

Fred Wilson: Cash Is Only King If You Use It - senihele
http://www.avc.com/a_vc/2008/10/cash-is-only-ki.html

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ryanwaggoner
It sounds like what Fred is saying is suspiciously close to the maxim "You
have a spend money to make money", which is often quoted by people as they
spend money on useless things that will in no way help them make money.

As a real estate investor, I can tell you that cash is kingliest when it's
sitting in your bank account. It makes expansion much easier, because people
are most willing to loan money to people who don't need it. I kind of expect
it's the same in the startup world...if you're sitting on a large pile of cash
with a low burn rate and high profitability, you can probably raise cash a lot
easier than a startup that's down to their last nickel with a huge burn rate
and no profitability in sight, yes?

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adamsfallen
What I found interesting is Tom's argument buried in the bottom of his post:

"Something you may have to spend cash on is making sure your product or
service and the pitch for it are relevant to your prospects and customers in
these tough times. Obviously, people are looking more for an opportunity to
save than to spend. Can you help them do that?"

In my consulting experience in the corporate sector, it seems to me that while
executives are interested in hypothetical savings, they are simply less
interested in investing in products or services altogether. I'd be interested
in how others target client's general risk-aversion mentality in bad economic
times with something other than a good argument?

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fallentimes
Link to the post he refers to: <http://blog.tomevslin.com/2008/10/when-your-
compa.html>

