One big reason early startups take on investors is to let the entrepreneurs spread the risks. When bright coders (or other high-salaried individuals) forego a high salary in favor of founding a startup they are raising their investment in the business month by month.
Smart investing means balancing your portfolio. Very soon, the kind of oportunity cost these founders invest in their venture dwarfs the rest of the portfolio. Any bank account is a safer investment than most if not all startups.
More capital raised initially means more salary and less risk to the founders. The founders can pass on the ketracel white ... uh... money to their troops. If some capital deal does not decrease your risk, then just don't do it.
Smart investing means balancing your portfolio. Very soon, the kind of oportunity cost these founders invest in their venture dwarfs the rest of the portfolio. Any bank account is a safer investment than most if not all startups.
More capital raised initially means more salary and less risk to the founders. The founders can pass on the ketracel white ... uh... money to their troops. If some capital deal does not decrease your risk, then just don't do it.