Tip 96: You can pay me. The flip-side to the previous tip are the investment opportunities we get where “this round of fundraising will allow the team to work on the business full time.”
This is another double-edge approach. Yes, we may be impressed that you have been building this business in your spare time. But we might not like the implication that dollars we invest here will simply go to paying you a salary.
We appreciate that (especially first-time) entrepreneurs have limited resources and necessarily afford to commit full time to a business that won’t make money this year. We admire your dedication. But on the other hand saying you are raising money to pay yourself more doesn’t feel like a great investment opportunity.
We want to see investment going to building a business – developing product, hiring sales teams, building marketing engines, creating sustainable value – not just paying your mortgage. It might well be essentially the same thing, but your phrasing is important.