What to watch out for when raising funding
I was recently interviewed by Jonathan Mules at the FT on what our key lessons have been in raising funding for PeoplePerHour. They are shared in this piece attached below which was published earlier this week. Entrepreneurs often embark on fundraising not realizing that there is a serious downside to raising too much capital or being too hyped. In fact there is an inverse correlation between the amount of money raised and the level of success – refreshingly honest advice coming from one of the most prominent VC’s in New York, Fred Wilson. He also once said “if you want to be a hyped business you gotta live with the consequences” which I couldn’t agree more, yet most entrepreneurs in the heat of the moment will consistently ignore that advice. This can make or break a business depending on what the terms of the deal are, and how much grit and tenacity the entrepreneurs posses. It’s a true test of a business and ones personality. I share my lessons here.