When entrepreneurs pitch us we hear about how much they are raising, how long they think it is going to last them, and what they are going to spend it on. As an entrepreneur, you need to think strategically about how to spend your money. Some investments may pay back and produce value immediately while some take a while longer, thus leaving you with a shorter runway. It’s all in the numbers!
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Hi Troy, great info here, as always! On the same subject, we (advisory side) have worked with clients that have bootstrapped their startup to the point where they now need outside expertise and capital. On their journey, they have "loaned" the venture hundreds of $1’000s to get to this point. They now want to use a portion of the investor capital to repay the loan plus fund and scale other critical items. I believe first time entrepreneurs would very much value your opinion on this approach.