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Hungry Start-up Strategy by Peter S. Cohan

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CHAPTER 7Straight Talk from Start-Up Capital Providers

HUNGRY START-UP STRATEGY argues that start-ups should delay raising outside capital as long as they can. Moreover, as we saw in Chapter 3, when entrepreneurs do seek out capital providers, they view it as both a risk and as an opportunity.

The risk is that the founder could lose control of the venture if there is a dispute with the investor. And the opportunity is that the founder can hire a boss who’s a “servant leader”—helping the founder achieve the shared goal of turning the venture into a market pacesetter. Naturally, the founder will attempt to minimize the risk and maximize the benefit.

Despite the love-hate relationship between entrepreneurs and capital providers, the two have hungers ...

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