What are the risks associated with startup funding?
An example of an AI chatbot conversation about the risks of startup funding.
What are the risks associated with startup funding?
There are several risks, including loss of control, dilution of ownership, and financial instability.
Can you explain how dilution of ownership works?
Dilution occurs when a startup issues new shares, reducing the percentage of ownership for existing shareholders.
What can founders do to mitigate these risks?
Founders can mitigate risks by carefully choosing investors, maintaining clear communication, and having a solid business plan.
Are there specific types of funding that are riskier than others?
Yes, venture capital can be riskier due to high expectations for growth, while bootstrapping may have less financial pressure.
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