Asked by Zachary Becker on Feb 18, 2024

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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

Crowdfunding

The process of raising funding for a new venture from a large audience (the “crowd”), typically through the Internet.

  • 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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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.