This is a common misconception. Fundraising (at least at the VC level) is to scale an already-working process that could be bigger/faster/more successful but is resource-constrained.

For example, maybe you’re profitable with 3 salespeople, but your profits aren’t enough to hire a team of 10 salespeople and five marketers. So you fundraise in order to have the money to hire those people and scale more quickly.



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Aaron Dinin, PhD

I teach entrepreneurship at Duke. Software Engineer. PhD in English. I write about the mistakes entrepreneurs make since I’ve made plenty. More @