Capital
Raising Capital Without Losing Control of Your Company
Capital is fuel. The wrong capital is poison. After running more than a hundred raises across companies I've founded, advised, and invested in, the pattern is consistent: founders optimize for valuation when they should be optimizing for partner.
A great term sheet from a mediocre investor is the worst kind of trap. It feels like a win, then quietly compounds into a board you can't lead, follow-on rounds that get harder, and decisions you no longer control.
Before you take a check, run this filter: Will this investor still be useful in three years when the metrics get hard? Have they ever held a position when a portfolio company went sideways? Do their other founders return their calls?
Then negotiate the structure. Liquidation preferences matter more than valuation. Board composition matters more than ownership percentage. Information rights matter more than naming rights. The lawyers will tell you these are 'standard.' They aren't.
Raise less than you can. Raise from people you'd want in your foxhole. The cap table you build is the company you become.
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