Asked by Zachary Becker on Feb 18, 2024
Verified
The general rule of thumb for new startups is to ______.
A) avoid seeking investment for as long as possible
B) try to get as much funding as possible as soon as possible
C) immediately line up one committed investor with deep pockets
D) seek many small investments from a wide range of people right away
A) avoid seeking investment for as long as possible
B) try to get as much funding as possible as soon as possible
C) immediately line up one committed investor with deep pockets
D) seek many small investments from a wide range of people right away
- Understanding the importance of financial stability and sustainability in startups.
- Recognizing the potential benefits and drawbacks of seeking investment.
- Evaluating different strategies for funding a startup.
Verified Answer
PP
Pathik Patel
Feb 18, 2024
Final Answer :
A
Explanation :
Startups should avoid seeking investment for as long as possible because it allows them to prioritize building a solid business foundation, proving their concept, and establishing a customer base before bringing in outside funding. This also gives them more control over the business and avoids unnecessary dilution of ownership.
Learning Objectives
- Understanding the importance of financial stability and sustainability in startups.
- Recognizing the potential benefits and drawbacks of seeking investment.
- Evaluating different strategies for funding a startup.
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