AmiSight 6/2: Are Venture Capitalists Up to Their Old Tricks?
Last week, I heard a sad story from an entrepreneur who just had to lay off half of his team. His investors were unwilling to put in their next round, and he had to quickly cut his burn rate and lay off employees he loved who had been with him for a long time.
Venture Capitalists can flip their moods quickly, with the flick of a light switch or an economic whim. So if you choose this funding mechanism and rapid growth path for your company, you must accept this risk.
Remember: sometimes the tortoise wins the race.