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More investors, more problems

Last year, FOMO was running high, and investors were doing seemingly everything to get into rounds: taking a secondary stake instead of a primary, forgoing a board seat, writing a tiny check just to get into a hot deal. Many founders leaned into this, and how can you blame them? Investors wanted to put more money into their companies, and each investor brings their own value-add and network to the table. In theory, that looks like a good thing. But, the pros of raising party rounds dry up quickly when the market turns — and a lot of companies are starting to realize that.

More investors, more problems by Rebecca Szkutak originally published on TechCrunch


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