What Can Your Investors Do For You Other Than Giving You Cash?

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2013/02/06 by lingdecklee

It took me some time to realize that it is not always a good idea to accept money from every investor, not matter how astronomical the amount is.

If your startup is really short of cash and will die tomorrow without it, then by all means, take the one(s) that offers the best strategic value (that is, if you have a choice of several investors).

Even if your startup is cash-rich, it is sometimes a good idea to accept money from certain investors who can offer some critical strategic value to your startup. The point is simple: a good investor acts as a spring board to your startup through the non-cash qualities of such investor. This is because, listen to this carefully, cash DOES NOT buy you everything!

As a young startup, we must attempt to do everything for a good reason. The same principle applies when it comes to accepting investors’ money.

This article talks about the VC’s role should no longer be just about offering cash or giving business advice, but often acting as a marketer through his/her influence network – a real strategic value to any young startup:

Pimp My Startup: Why I Want My VC To Focus On Marketing, Not Just Money 

This next article is also talking about the need for investors to offer everything else other than just money:

10 Views On What To Look For In An Investor 


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