The Problem with Investors
by OskarWallin
Ben Horowitz makes some interesting points in his blog post “Cash Flow and Destiny”. In this short post he goes on to address the importance of cash flow. Investors can be a good way for a business to generate funds. However, if you take someones money, you also take their opinion on board. Horowitz explains how was able to succeed by ignoring the voices of investors and potential investors. This might not always be possible due to desperate cash flow problems and agreements made when taking their money
For a start up, cash is needed for the company to grow and to avoid layoffs and possibly bankruptcy. Every startup must find a good balance between cash from investors and being able to take the company in the direction they want. Businesses fail due to poor cash flow all the time. At the same time, they also fail due to dilution of power and an unclear direction for the business. I believe that businesses should be careful when choosing who to work with and who to take money from. The quality and knowledge of the investor may be more important than the dollar value of their offer.
Works Cited:
Horowitz, Ben. “Ben’s Blog.” Ben’s Blog. Web. 19 Nov. 2015.