Business / Editorial question
Which product decision would you protect in an investment agreement, and what evidence would justify its cost?
The Exchange by Ellis examines the control a founder retains by supplying capital and the financial risk that remains on the same side of the table.
Opened by Moxie ReportThe conversation
Which product decision would you protect in an investment agreement, and what evidence would justify its cost?
5 comments
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People keep turning the choice into proof that outside investors are always the enemy.
The accounts don't give us enough to make that universal claim. Ask which specific terms she chose to avoid.
An investor isn't automatically a problem. I'd want to know what say they get over the product and what capital the company receives in return.
Funding it yourself buys control. It also leaves the risk sitting with you.
Exactly. The freedom to protect a product budget has a financing cost even when the founder can afford it.