Investment decreases your risk. Before investment, you have a 50% shot at zero or negative ROI. You have a 35% chance at salary-level return. You have 14% chance of a low multimillion dollar return. You have maybe 1% odds at a very high return -- if you've got a business model this good, you'll be fighting funded businesses too.
After investment, you have 95% odds of salary-level returns. Investment lets you pay yourself a salary. Your odds of low multimillion dollar return go to vanishingly small -- maybe 1% -- unless you're really at the edge, it is either eaten by liquidity preferences, or bigger. Your odds of very high return jump up to 4%.
After investment, you have 95% odds of salary-level returns. Investment lets you pay yourself a salary. Your odds of low multimillion dollar return go to vanishingly small -- maybe 1% -- unless you're really at the edge, it is either eaten by liquidity preferences, or bigger. Your odds of very high return jump up to 4%.