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These are healthy reasons for fundraising, because the capital is being used to accelerate growth. Now let’s look at the bad reasons founders sometimes raise money. Some startups raise funds: To cover losses To compensate for poor planning To create the appearance of success Simply because ot…

These are healthy reasons for fundraising, because the capital is being used to accelerate growth. Now let’s look at the bad reasons founders sometimes raise money. Some startups raise funds: To cover losses To compensate for poor planning To create the appearance of success Simply because other startups are raising money These reasons are dangerous. Funding should not be used to hide weaknesses in the business. There is an important principle every founder should remember: Money ampli