10 reasons to avoid using VC or angel capital to fund start ups:
- We will get to make all of the decisions
- We can focus on doing, not reporting
- A VC funded business is just like having a job. Isn’t that what we left?
- It doesn’t have to be about making money
- We wont need an exit plan – like selling what we’ve built.
- VCs are fun vampires
- VCs don’t get bootstrapping & viral marketing
- We can do it quicker without them
- Not having money stimulates creativity
- We’ll learn more without them
- (bonus reason) – it’s OK to fail
But can’t VCs (or more specifically business angels) bring much need expertise and contacts? Or can these be tapped into simply by networking?
You’re right. They can provide invaluable expertise and contacts. But often for a small start up there are greater benefits going alone. Learning the ropes before going for a big trophy idea / business.
Truth be said, there are also 10 + reasons to get VC funding. Arguments both ways…I’ll do an entry on it.
Steve
Steve, I agree with you. I’m about to release a startup of my own and don’t plan on going out for VC because of the ability that you retain. I just quoted you on my latest entry.
Once you’re successful doing things your way, and you’re succeeding, investors would be eager to buy you out – that would be more fun.
But some ventures need investors to begin with.
farrukh