There is a charged post by John Casasanta, of Tap Tap Tap the maker of great iPhone apps, that is a must read for anyone developing or funding a business.

I 100% agree with John’s position that you should not take a VC round if you feel like you are being pushed into it. In the end, no one cares about your company more than you. We are a 4.5 year old, profitable 17 person company with only a great group of Angel investors. When a VC round is right for us we’re all for it, but if you love what you do and you don’t think you can execute on the plan that a VC investment would require, wait until a better time.

I also sympathize with his fear that too much money flooding in the iPhone app space may turn the iPhone party into a Slide/RockYou thing and not the horizontal party it is at the moment, but I don’t agree that it will hurt Tap Tap Tap as a company. If you make great quality product with a singular passion, there will always be room for your business to excel, especially when it’s in such a young market as iphone (and even web) software is. Stick to your guns John and Tap Tap Tap, but don’t worry too much about what strangers and people you do not trust say and do. Making great things is the best revenge =D