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My Company Raised Nearly $500 Million. It Has Taught Me When to Say No to Funding

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12.06.2019

Shortly before a multimillion-dollar deal in one of Kabbage's fundraising rounds, my co-founder Rob Frohwein began to have doubts about our potential investor.

The signals were subtle but telling. The investors insisted that we sign the document before they did, which telegraphed a simple truth: They didn't trust us to follow through on the agreement.

We really did need the money, and securing the venture deal was dependent on the investor's participation. The final straw was a dispute about a signature page held in escrow. At the 11th hour, Rob went with his gut--and I fully supported it.

We didn't need the money badly enough to be in a relationship with someone who didn't trust us. We scrapped the deal and walked away.

The choice to leave money on the table is a difficult one, especially when you've sunk so much of your own time and money into putting the deal together. But at some point for every business, there are good reasons to say no to someone (and his money) no matter the amount.

Investments are like romantic........

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