zlacker

The question is why you'd use money you raised for anything but the reason you raised it. You've probably raised a shit ton more than I have, but hear me out - when one raises, there's generally a timeline of fund deployment from the startup's UoF, right? That's how it was done in my case - we tell the investor what we need, why we need it, and when we need it, etc. And then if the investor agrees to invest, it's not just a lump sum sitting in the bank - a good amount of that money gets deployed to help the startup fulfill its mission.

I get that if you're running super lean and you've raised enough to run lean for a while and use cash when you need to, but at the same time why raise more than you have need for?

>>NickC2+(OP)
I've seen VC's who care a lot about understanding how their companies are going to spend the money. And other VC's who don't even ask the question, or accept generalities like "hiring, scaling" with equally loose timelines.

The latter group most commonly in the bay area.

>>cj+db
>And other VC's who don't even ask the question, or accept generalities like "hiring, scaling" with equally loose timelines.

Which is crazy to me.

You write a check for a lot of money, and don't care how/when/where the money is spent? Or you accept bullshit vague answers?

That's not due diligence, that's deliberate ignorance.