I think there is a much bigger flaw in the version of the argument stated in the article.
The argument boils down to "here is a bad thing about raising capital, here is a good thing about not raising capital, therefore not raising capital is better".
But there are other pros and cons that this argument is ignoring, so it is not logically correct.
> I’m not suggesting that there are never reasons to take outside investment. Obviously there are. But, we should recognise that doing so comes with significant trade-offs and difficulties that mean it shouldn’t necessarily be the default.
(I see that @ilyt already posted this exact quote.)
The argument boils down to "here is a bad thing about raising capital, here is a good thing about not raising capital, therefore not raising capital is better".
But there are other pros and cons that this argument is ignoring, so it is not logically correct.
I also think the version in the article is an unfair representation of the original blog post (https://ensorial.com/2020/dont-raise-money/), which explicitly says
> I’m not suggesting that there are never reasons to take outside investment. Obviously there are. But, we should recognise that doing so comes with significant trade-offs and difficulties that mean it shouldn’t necessarily be the default.
(I see that @ilyt already posted this exact quote.)