Instead of sharing Devin’s Impact Pick of the Week, I’m sharing a decision to pass.
Impact Members have asked me to explain what I look for that would cause me not to invest. Recently, I reviewed an offering with an appealing mission and a financing structure I like. I ultimately decided against investing.
I’m deliberately withholding identifying details. My purpose is to explain my decision process, not publicly grade a founder who is doing the hard work of building something.
The capital didn’t match the plan
My first concern was whether the company would have enough money to give its plan a fair chance.
The documents suggested it could continue operating without the targeted investment. That can be encouraging, but I couldn’t see a convincing explanation of how ongoing operations—and the founder’s livelihood—would be funded.
Founders need to eat. Outside income can help support a young business, but it may also limit the time available to build it. I wanted a realistic budget that accoun…