Monday, November 22, 2010

What is the most onerous aspect of using Venture Capital?

For the Entrepreneur, giving up too much equity, and with it, control over the direction of your Company, your brainchild, and the fruit of all of that blood, sweat and tears is the most onerous aspect of taking on a VC.

The benefits of bringing in a VC can include:

  • Experience in building a fast-growing company.
  • Expertise in operations.
  • Improved Balance sheet and access to future sources of funding.
  • Strategic alliances.

The benefits are obvious.  Some of them might even be realized...but at what cost?

There is an alternative to accepting VC money that gives you the same potential benefits, but doesn't require you to give up control before you know whether or not your company is going to be a mild or a wild success.