Fred Wilson writes at the end of his post on Being Fat is not Healthy:
“….raising a lot of cash and making a large investment in the business is a big positive. But in my opinion you only want to do that once you are 100% sure and have ample evidence that your product has hit its stride, you’ve got yourself in the place you want to be in your market, and you can raise the capital without taking much dilution. If all of those boxes are checked yes, then go for it. But please spend it wisely.”
The key test is can you raise lots of cash without taking much dilution? If you can, then you know others agree that the winning post is in sight. It is not luck, it is lots of hard work focused on the one goal of creating value as appreciated by others – the new investors.
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