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A startup can't endure that level of distraction for long.
An early stage startup grows mostly because the founders make it grow, and if the founders look away, growth usually drops sharply.
Such a high proportion of successful startups raise money that it might seem fundraising is one of the defining qualities of a startup. It's so common for both (a) and (b) to be true of a successful startup that practically all do raise outside money.
But there may be cases where a startup either wouldn't want to grow faster, or outside money wouldn't help them to, and if you're one of them, don't raise money.
September 2013Most startups that raise money do it more than once. But the three phase path is at least the one about which individual startups' paths oscillate. That's the type the startups we fund are doing on Demo Day, and this essay is the advice we give them.