> You seem to think investors are some sort of ATM
No. I don't seem to think that, at all.
Let me explain it again, just for you.
A common problem for startups seems to be dealing with investors who say they're in and a week later they're out and then later they're in again and then out, etc.
As a start up you'd like "commitment" from an investor because if an investor claims they're in and then they're out, it would be immensely frustrating right? It means you can't commit to hiring that great developer or rent that office space you so desperately need or pay yourself some salary for a change.
You might have met with an investor a few times and at some point they "say" they are very interested and they'd like to invest $100k in your idea. If you then explain to them that you'd like them to sign a commitment agreement to see how serious they actually are. If they sign it they can still change their minds, it will just cost them x% of the proposed investment. If they are not willing to sign it might just show that they're not actually interested after all, they just like to keep you around just in case something else falls through.
You're forgetting who has the power in this relationship. It's the people with the money. Remember the Golden Rule? "He who has the money makes the rules".
No. I don't seem to think that, at all.
Let me explain it again, just for you.
A common problem for startups seems to be dealing with investors who say they're in and a week later they're out and then later they're in again and then out, etc.
As a start up you'd like "commitment" from an investor because if an investor claims they're in and then they're out, it would be immensely frustrating right? It means you can't commit to hiring that great developer or rent that office space you so desperately need or pay yourself some salary for a change.
You might have met with an investor a few times and at some point they "say" they are very interested and they'd like to invest $100k in your idea. If you then explain to them that you'd like them to sign a commitment agreement to see how serious they actually are. If they sign it they can still change their minds, it will just cost them x% of the proposed investment. If they are not willing to sign it might just show that they're not actually interested after all, they just like to keep you around just in case something else falls through.
It's just business right?