Why should a startup with money idea to spend the money of investors

do you want the sky out of money? It is absolutely everyone wants to have fun. For some entrepreneurs, they only need to find a venture capital or angel investors, and then there will be a lot of money into the account of their own. When you get the money, you can play the game, or to the office buddies to send welfare, even without the attention to the company’s burn rate.

of course, it may be a dramatic version of the story, but to be honest, maybe there are a lot of entrepreneurs is to look at the venture capital. I and many entrepreneurs have had exchanges, also a lot of entrepreneurs and business, these people really have many terrible ideas ", they are more wind investment gold as a" profit ", rather than an investment".

recently, I saw the famous Chris Sacca in Twitter Angel posted a tweet, meaning that entrepreneurs: if you decide to start in a new field, so investors should have the opportunity to invest their own back. See figure below:



Chris said is another thing, but I think the same thing, he wants to express the concept, in fact, is very important. When investors invest in your company, entrepreneurs should not regard this investment as a "free money", but should not regard investment as a gift. Investors are not lottery companies, entrepreneurs who get the investment is certainly not in the lottery.

I can not help but start thinking about Chris mentioned entrepreneurs spend money attitude and mentality".

if the entrepreneurs think this investment is already own, and no matter how flowers, so this idea is not healthy, so that your company is also unfavorable to support your investors "infidelity". Investors invest in your company because they feel that you will use the money to develop your business and make it possible for investors to be rewarded.

for example, if you need a new air hockey table, investors will not give you the money.

imagine, for a moment, you want to do one thing, to create a small company, such as a shop on the corner, to provide lawn mowing service, or to open a sandwich cafe.


at this time, the first thing you have to do, may not seek investment, if you need money, then the first step may still be very traditional, or find ruthless bank loans, or borrow money from your friends and family.

in the first case, you’ll sign a contract and promise to pay off thousands of dollars, regardless of whether the business is good or bad; in the second case, you work hard with your friends and family