How to drive growth — with or without VC funding
by Alex Song, Founder and CEO of Innovation Department
This is an excerpt from an article that originally appeared on Entrepreneur
Is venture capital funding becoming obsolete? As The New York Times reports, some entrepreneurs are starting to reject offers of funding, suggesting that founders are trending away from the traditional VC model.
More than that, we’re seeing leaders in the startup space outwardly express the need to shift focus away from VC funding. Bryce Roberts, co-founder of O’Reilly AlphaTech Ventures, for example, suggests that startups reconsider VC funding or avoid it altogether, while MeUndies founder Jonathan Shokrian urges entrepreneurs to find alternate paths to success.
In my experience as a founder, CEO and investor, I’ve found that the path to success is the middle ground between depending on VC funding and rejecting it altogether. Venture capital is valuable to a fledgling company, but even well-funded startups fail without smart leaders to guide their growth.
Big checks from venture capital firms still offer plenty of appeal. VC funding provides social validation, which helps founders recruit better talent. More money can also…
Read the full article now on Entrepreneur.
