When to Say No to Investor Money
Recognizing when a term sheet isn't worth accepting and understanding the true cost of bad money.
You have a term sheet. But something feels off. This is the moment that defines your company. Not the yes. The no.
Capital without conviction is dangerous. You need believers, not tourists.
Board seats. Protective provisions. These are power dynamics that will define every major decision for the next decade.
If you're building a generational company and they're optimizing for a quick flip, someone's going to be disappointed.
Bad money costs more than good money earns. It costs you time, talent, future rounds, and your vision.
Your cap table is permanent. One bad investor can haunt you for a decade. One good investor can change your trajectory forever. Choose carefully.
