3 Stupid Reasons to Raise Venture Funding
blog.eladgil.com
blog.eladgil.com
As I mention in the blog, if you are raising money to accelerate what you are doing, want to scale the company etc. you should absolutely do so.
I think this is a "good reason" to raise money.
That said, I also think sometimes people want raise money for the wrong reasons as listed in the blog.
Small companies often lack the resources that they crave, have to be scrappy, and viable from the start. Big companies are often comfortable, suffer from inertia given their size, and innovation is often not a survival instinct. Small, well funded companies have built-in expectations from stakeholders for X-times return in N years, and so the operations and culture may not be built for long term viability.