Steve Blank has the best article on startups and investing I have ever seen. It all boils down to a liquidation event. You are taking investment money to dump off your company. Well, in most cases you are. Sometimes an IPO is a target, but more often than not you are looking for a payday. Let me rephrase that. Your investors are looking for a payday.
That doesn’t mean investment is bad. Just that any founder of a startup should know what they are getting into.
In my personal opinion, investment is okay, given the company is profitable and there is plan to pay back the investors.
Know what you are getting into.
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