When Founders Get Trapped In The Funding Vortex

Squeeze that last cent!

There are two types of entrepreneurs in the world. There are those who take risks very cautiously and work as long as possible to grow their startup without borrowing money. These are the folks who use only their allocated savings, never tapping into their credit cards. They have a safety net in case something happens – sometimes in the form of a spouse or a side job.

The other type of entrepreneur goes all in. This founder believes with great risk comes great reward. You’ll often see these people liquidating their life savings, agreeing to high interest rate loans, and borrowing from friends and family. They may seek investors very early in the startup game, optimistic about the returns.

There is no right or wrong type of entrepreneur. However, the second type of founder usually faces much more stress, and will have to make decisions under more duress.

Remember to meet the risk threshold that you are comfortable with when making your funding decisions as you grow your business.

What type of entrepreneur are you? Let us know in the comments below.

[This post by Kriti Vichare first appeared on #entrepreneurfail and has been reproduced with permission.]