from Hacker News

Brokers, Smokers and Midnight Tokers: Finder Fees and Early Stage Fund Raising

by davidcrow on 9/26/12, 4:01 PM with 1 comments

• by OldSchool on 9/26/12, 4:29 PM

  Best advice I ever received, and it was from multiple entrepreneurs I interviewed at a key time: if you don't HAVE TO take on investors - don't. That includes becoming an OTC/likely eventual pink-sheets traded stock. If you're already making it then keep the money-only guys out of your business.

  Conversely, there are advantages to having the right people own an interest in your company. #1 They will want to cash out and if you're primarily a techie, chances are they will be better-connected and able to make that happen. However, be aware that their investment contract with you will ensure that they are taken care of first and you will get what's left, likely along with any risk associated with a sale.