> The twist is that this game isn't only for 1 round. Once you take your company into this game, you're stuck in it — you'll have to keep fundraising to keep fueling the growth that you've kickstarted using external capital.
Why? What stops you from raising a $15m series A and only burning it conservatively until you hit neutral profitability. Investors only have 15-25% of your cap table and can't strong-arm you.
You would have had to mislead them right? Why would they give $15m to use slowly when they can give $15m to a company that will use it quick, assuming both companies are using it in a +EV way?
Why? What stops you from raising a $15m series A and only burning it conservatively until you hit neutral profitability. Investors only have 15-25% of your cap table and can't strong-arm you.