- Last Updated: [[2020-12-08]]
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- Source: [[Raising Money Adds Ris...]]
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- # Some negative effects of funding
- ## Success gets redefined by the funders
- [[Jason Fried]] says it "narrows the definition of success" in [[Raising Money Adds Ris...]]
- My experience with [[Tricentis]] and [[Flood (company)]]: The acquisition of Flood by Tricentis changed its original goals and priorities. [[Tim Koopmans]] and [[Ivan Vanderbyl]] originally wanted to build something for the [[opensource]] crowd, but Tricentis wanted to turn Flood into something more commercial and proprietary.
- ## Higher expectations
- of **profi**t: Investors only invest because they expect you to succeed. Are you ready for the added pressure?
- of **time**: There are projections that need to have been made to woo investors, and you can't just go at your own pace anymore.
- ## Higher costs
- More resources means that there's a greater risk of increasing costs beyond the point of being able to break even.
- ## Less control
- Depending on the terms of the funding, taking someone's money means giving them more control over what you build.
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