I think a society in which people can do and say what they want will also tend to be one in which the most efficient solutions win, rather than those… - Paul Graham

When startups fail the reason is almost always that they haven't made what people want.

In almost any group of people you’ll find hierarchy. When groups of adults form in the real world, it’s generally for some common purpose, and the leaders end up being those who are best at it. The problem with most schools is, they have no purpose. But hierarchy there must be. And so the kids make one out of nothing.

If you're a hot startup, investors will offer you money on terms so good it would seem crazy to refuse. And yet it will often be the right thing to. Not because of the dilution, but because raising too much will make your company slack and bloated.