Nils Bunger raised a great deal of money for his first start-up venture, Pano Logic, in 2006. Only later did he realize that he might have raised too much money. When he launched his next venture, MobileSpan, in 2006, he intentionally left some on the table.
“Too much capital is toxic,” Bunger says. “Too much capital early in a company’s life can hamstring a company and its options. When you raise a lot of capital, you’re effectively saying you’ve found your business model, and it’s time to scale it. But if you do that before you’ve truly figured it out, you’ll run into a lot of problems, because your board expects you to scale the business while you’re still working out what your business actually is.”
To read the full, original article click on this link: Too Much Capital Is Toxic: A Cautionary Tale For Startups - Forbes
