**Pros:**

✅ **Capital for growth** – Funds product development, hiring, and scaling.

✅ **Faster market entry** – Helps beat competition.

✅ **Expertise & networking** – Investors provide mentorship and connections.

✅ **Reduces personal risk** – Shared financial burden.

✅ **Boosts credibility** – Attracts customers and partners.

✅ **Hires top talent** – Competitive salaries and equity.

✅ **Better marketing & sales** – Faster customer acquisition.

✅ **Flexibility** – Ability to pivot if needed.

 

**Cons:**

❌ **Loss of equity & control** – Investors take ownership and influence decisions.

❌ **Pressure to scale quickly** – May lead to unsustainable growth.

❌ **Ownership dilution** – Future rounds reduce founder’s stake.

❌ **Repayment obligations (debt funding)** – Loans add financial pressure.

❌ **Investor conflicts** – Disagreements over strategy.

❌ **Valuation risks** – Overvaluation can cause future funding issues.

❌ **Time-consuming fundraising** – Distracts from operations.

❌ **Exit pressure** – Investors expect returns in 5-10 years.