What happens if you can’t pay back an investor?
SaaStr
AUGUST 4, 2019
If it is a professional investor — it is fine. They write it off and move on. Unless there was some sort of fraud or something, true professional investors will be fine with it. The only real exception will be if they’ve written a really, really big check, often over multiple rounds. It’s part of their portfolio strategy. Every early-stage investor expects a portion of their investments to fail, a portion to have middling performance, and a smaller portion to make them a lot of money.
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