And a little money, apparently
Between 2021 record breaking In the crowdfunding movement, it was common to see startups raising multiple small checks from multiple firms and angel investors. But now that companies are looking to raise expansion financing, many investors are realizing that it doesn’t always mean more future cash.
Last year, FOMO was running high, and investors were doing just about anything to get in on the rounds: taking a secondary stake instead of a primary, giving up a board seat, writing a small check to get into a hot deal.
Many founders have 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 addition and network to the table. In theory, that sounds like a good thing. However, the benefits of raising party rounds quickly dry up as the market changes – and many companies are beginning to realize that.
