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Hungry Start-up Strategy by Peter S. Cohan

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CHAPTER 3Raising CapitalMaintain Your Fighting Weight

WHEN IT COMES TO hungry start-up strategy, there is often no more compelling trade-off than the one between the hunger to control the start-up’s destiny and the need to pay its bills. Most entrepreneurs postpone as long as possible taking money from outside investors.

And the reason is fairly simple: Taking an investor’s capital means ceding some control of the venture. And since controlling the way they spend their time is often the most important reason that founders start their companies, it can be painful to raise capital. Of course, with capital comes the pleasure of being able to meet a start-up’s financial obligations and to pay for its growth initiatives. But that hunger for control ...

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