The Full Ratchet (TFR): Venture Capital and Startup Investing Demystified cover image

418. Why Market Size is Irrelevant, Patterns from Working with the Best Founders, & How AI Compares to Past Paradigm Shifts (Gaurav Jain)

The Full Ratchet (TFR): Venture Capital and Startup Investing Demystified

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Risks of Raising Too Much Capital

This chapter explores the potential risks associated with raising a high amount of funds at the early stages of a company, including increased burn rate, hindered nimbleness and experimentation, and the challenges of managing a larger team and meeting higher expectations in subsequent funding rounds.

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