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What to do in a hot investment market  

Companies get hot. And investors start throwing money at them. Entrepreneurs get calls and emails all day long from investors wanting to invest. After a while, the entrepreneurs start to think that they should take the money. Not because they need it, but because they figure if people are throwing money at them, it's probably a good idea to take some.

Fred Wilson proposes some advice for people who are being chased by investors, starting with:

1) Don't take money you will never ever need. No matter what price and terms the money is offered, it has a cost. Money is never free. If you have absolutely no need for the money then don't take it.

It's not a problem you're likely to get in Europe, but if you're based in or near the Valley, it's probably relevant.

One of the points:

3) If you need the money, then raise it now. I have not seen a better time to raise money for web startups since the late 90s.

raises the specter of the dot com bubble. Are we in a bubble? Maybe in the US. And to think, IPO season is only just beginning there, with Facebook, LinkedIn, Twitter, and Groupon all lined up to IPO in the next couple of years.

More from the library:
Three types of acquisitions
Principles for designing and deploying internet-scale services
How Jason screwed up his Google acquisition