James Sinclair tells early-stage founders to reject investors who show red flags, even when money is tight. Bad cap-table relationships are hard to undo. Not all capital is equal.
Questions this video answers
James Sinclair
May 31, 2023
Chapters
If you're a startup founder raising money pre seed seed early series A just remember this. It's easy to get a divorce, it's hard to get rid of a bad co founder. It's almost impossible to get someone off your cap table. Not all money is equal. You must understand the person or the fun behind their money and you must understand their objectives. You must have equality. You must feel respected, you must not feel like they're ghosting you and you're having to chase it. They're not being transparent, they're making your life slightly difficult. All of these red flags are red flags that tell you what the next potentially seven to ten years of your life is going to be with this person or with this fund and the best thing you can do is walk away from bad money tough because you need it urgently and I understand that but it's the best thing you can do for the long term survival of your startup. Good luck.