The only time it make senses to grab as much money as you can is when you're building to flip. I've always viewed raising as little as you can if you are serious about building a sustainable business.
No. It makes sense to raise as little money as possible as you can when you are building to flip. Think about it. I'll explain the math if you can't figure it out.
Not all new companies are startups. Startups are companies that are in search of a business model. They are building something that is at least somewhat capital intensive before they can get revenue.
There is a lot to be said about bootstrapping, and if you can do it then that is awesome. But there are lots of ideas that require some cash to get off the ground.
You are right about the math and I respect that you did that with delicious but not many entrepreneurs are like you.
No matter how it much it "make sense" to not raise more, most entrepreneurs will do the opposite and not take the risk of running out of cash before the exit. It's like the blue and red pill.
I'm not sure how you define startups but that's subjective and I think all new companies are startups. I would say most new companies have a clear revenue model in the beginning and it's all about making it happen or pivot till you got it right. There are some that don't have one at the early stage and it's also rare to see one that had gotten successful versus most that just got bought without even breaking even or mmde a single dime.
