Chapter
The Downside of Raising Too Much Capital for Your Business
Excessive capital can harm the fundamental profitability and unit economics of a business, causing the business to eventually fail. A business should use capital as fuel to accelerate its growth, rather than letting capital become its primary asset.
Clips
Capital is fuel for a business to accelerate, but when it becomes the primary asset, the business is doomed to fail.
11:30 - 16:16 (04:46)
Summary
Capital is fuel for a business to accelerate, but when it becomes the primary asset, the business is doomed to fail. Raising too much money and flexing beyond the natural course of the business hurts profitability and unit economics, leading to a write down eventually.