2min chapter

Startup School by Y Combinator cover image

How to Get Meetings with Investors and Raise Money by Aaron Harris

Startup School by Y Combinator

CHAPTER

Don't Raise Money Before You're Ready

Before you start spending money on user acquisition, it probably makes sense to start acquiring people for free. Get users who love your product to tell their friends about how much they love the product, and then you get them for free,. Then some of you will nee customer service. The earlier you raise money, the more dilutive that capital is. People aren't going to give you a three million dollar valuation unless you have something to show them. Every dollar raised is more of your equity in your eventual multi billion dollar business you're giving away. You don't want to do that if you don't have to.

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