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Hardware Founders: (When) Should You Try To Raise VC Money?
['Eric Migicovsky']
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But as we tried to find new markets for growth our baseline operational costs (team, marketing, logistics and manufacturing) grew in larger discrete chunks as we hunted for new revenue while supporting our millions of early customers. VCs (from seed to large institutions) build financial models and raise money from limited partners with the promise that they will return a profit according to the model. If you find product market fit and experience exponential growth, great!