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Old 01-10-2013, 12:58 AM  
bhutocracy
Not making A Comeback
 
Industry Role:
Join Date: Dec 2001
Posts: 10,218
Quote:
Originally Posted by livexxx View Post
"We don't need the money to be honest"

Hmmm, so why an angel, why the money. Look at bootstrapping is it a 5yr exit, 1yr exit or just short term glory? Most investors typically ask "If you are so good, why do you need the money?"

IMHO go for the short term loss and long term gain and stay private, unless your business plan isn't scalable of course and you want their money until the next good idea ;)
Sometimes it's a matter of growing big fast enough to ensure dominance. Slow bootstrapping whilst ideal can leave you open to someone coming in bigger and faster after you've proven a market but haven't grown enough to own it.. especially if there isn't 12 months of development lead time in the core business.

The business might not need money but giving 15-20% to de-risk against copycats and ensure dominance can be a good deal depending on the business. It could also bring exit a year or two closer which is worth a few % given the time value of money...
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