tag:blogger.com,1999:blog-3864946058633399508.post8808278469298647747..comments2008-06-16T22:14:02.074-04:00Paul Dawalibihttp://www.blogger.com/profile/14369626538524500418noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3864946058633399508.post-42514596651123932202008-06-16T22:14:00.000-04:002008-06-16T22:14:00.000-04:00Agree as well, although I think it's unfortunate that the capital-raising process is so inefficient: creates significant transaction costs. <BR/><BR/>If transaction costs were lower, would it make sense to raise less capital at each funding point? (by lower transaction costs I mean easier, quicker, less expensive legal fees, time for meetings with VCs, and maybe even risks to entrepreneurs for VCs negotiating changes in terms each round)<BR/><BR/>Taking too much money does tend to create perverse incentives and take entrepreneurs away from managing costs effectively, but one would hope that can be fixed by focusing on using cash efficiently.<BR/><BR/>But we've seen more companies fail because they didn't have cash to survive through inevitable delays and changes in strategies than the flip side. Things change, and it's important to be prepared for the right risks.Taylor Davidsonhttp://www.taylordavidson.com/writingnoreply@blogger.comtag:blogger.com,1999:blog-3864946058633399508.post-85772209250924994152008-06-16T13:55:00.000-04:002008-06-16T13:55:00.000-04:00100% agreement Paul. Assuming you are reasonably comfortable on the valuation side take as much as you can get, going back to the well is neither fun nor easy!APMarshallhttp://www.blogger.com/profile/13658833084559881289noreply@blogger.com