Cambridge Cluster

Fred Wilson makes the point that Twitter raised funds:

“But there’s a saying that I heard early on in my tenure in the venture business that still rings true.

The best time to raise money is when you don’t need it”

Interesting that Fred says “I am thrilled that Twitter will be working with Todd Chafee and his partners at IVP and Peter Fenton and his partners at Benchmark. The list of investors in Twitter just keeps getting better and better.”

That is the way to build an Active Equity Company.

Of course, Twitter like CraigsList, seems to provide a platform on which so many others can build and keeps it’s own headcount down, way down with a very small team (some 30+ people I think).

So often I hear people say things like “Why do I need to raise money when I am doing so well”.  Look at Geneva Technology and the late, great Stephen Thomas.  Plan raising money using a business plan resource, not when your backs are against the wall.

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