Why Your Startup Doesn’t Need Venture Capital
Advice on what to consider in growing your startup venture.
Original article was posted on Inc.com.
With the popularity of entrepreneurial shows like Shark Tank and the influence of tech news headlines, there is a growing misconception that to succeed as an entrepreneur, you must seek venture capital. Contrary to popular belief, this is not true.
Sure, the proven venture capital financing route yields its benefits, such as million-dollar checks, business expertise, active support, and new connections, but it is smart to consider all options before settling on a final decision.
Here are five important questions to ask if you are considering a venture capital investment:
1. Do you understand the motivations of venture capitalists?
Investors are motivated by winning big. Thanks to the venture fund business model, they are substantially incentivized for hitting home runs by betting on the right companies.
This is why investors make risky bets into startups that have the potential to soar and become billion dollar companies. Funders gain a tremendous amount of upside if your startup is sold or becomes public through an IPO.
