Abstract
This case focuses on two Mexican entrepreneurs whose secondhand product retail company has reached a point where they must decide whether to sell an equity stake to a venture capital fund (VCF) or request an equity contribution from existing shareholders. The VCF would ensure opening 40 stores in 2 years and a dramatic boost in the business, whereas contributions from existing shareholders would slow the company's growth but would avoid equity dilution. Is this the right moment for venture capital funding, or is it better to wait to improve the company's financial performance? What are the risks of growing slowly?
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