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Valuation
Taking on money at a large valuation can make the inventor an employee of his/her own compamny.
Lean Operations The “Lean” mindset that created the company’s success is often replaced with a more corporate one that smothers growth.
Risks of a Capital Raise
Distraction
The CEO needs to be involved in a capital raise, this takes the leader’s eyes off the ball and can impact operations.
Legal
IRS and SEC issues are very common in light of the success of the Start-Up Revolution; missteps can negate a successful exit.
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