Tactus Tackles Fund-Raising
Read the case “Tactus Tackles Fund-Raising” at the end of Chapter 8 and answer the questions that follow:
1. Craig Ciesla and Micah Yairi eventually turned to friends and family for funding. Should they have done that first? What are the risks with raising money from such individuals?
2. What are the risks and benefits of waiting until they had been granted patents to ask for customer feedback?
3. The partners gave up equity in their company — part of the ownership — to get help they needed. Was this a good idea? Why or why not?
Why do you think Ciesla and Yairi stuck it out, even with such bad luck? What would it take for you to be so persistent?
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