DISQUS

Instigator Blog: Should You Raise Venture Capital For Your Startup?

  • Mark Evans · 2 years ago
    It's really solid advice, Ben. One thing I would add is attracting venture capital involves a lot of work before and after funding given many VCs want/need to meet, discuss, be involved, etc.
  • heri · 2 years ago
    i am still amazed how you got the deal. this is going to bring in lots of pressure. i guess i need to watch out and reevaluate standoutjobs.
  • Ben Yoskovitz · 2 years ago
    Mark - There's no question. When getting funding there's definite overheard beforehand and after.

    Heri - Money or not, there was plenty of pressure already, put there by Fred, Austin and myself. The money means we answer, in part, to more people than just ourselves, but every business has that - you answer to your customers, employees, partners, etc.

    Give us till the Fall. We'll launch something and you can re-evaluate then. I look forward to it.
  • Business Blogger · 2 years ago
    Congrats on the start-up! I wish you all the best. There is obviously a hole that needs to be filled and you found it.
  • Emmie · 2 years ago
    Hey Ben I just gave you the "Thinking Blog Award" it is your choice if you accept or not. You can check out my post on it to know more... http://friendshipblog.blogspot.com/2007/06/thin...
  • Ben Yoskovitz · 2 years ago
    Business Blogger - Thanks. Here's hoping. *smile*
  • Ben Yoskovitz · 2 years ago
    Emmie - Thank you. Very cool. I'll have to think about those 5 blogs and what I can do about posting on them soon...
  • Gina · 2 years ago
    I think it's necessary to play things in a safe way. Starting a business with enough capital to run the business in a good way should be the target. It doesn't have to be outstanding all the time..
  • Sweety · 2 years ago
    Hi
    For fresh graduates or for employees who want to start their own businesses, one of the hardest things to do is to get the capital that they need to do so. This is because most of the traditional sources of loans or funding are apprehensive in providing funds for start-up businesses.
  • Apartments Dubrovnik · 1 year ago
    hmmm. . Great article. . and i have learned some interesting stuffs from this blog. . And i am sure to try with. . Thanks. .
  • Tim · 1 year ago
    Ben, what about a startup that has a moderate level of success already? What if the founder can support himself, but not scrape together the capital to hire. Would you suggest a small business loan or possibly looking for VC funding?

    Thanks,

    Tim
    Business Planning Software
  • Ben Yoskovitz · 1 year ago
    @Tim: The short answer is this: "It depends." There are a lot of variables in the equation. But from the sounds of it, this business is a "lifestyle business" which you want to grow but not scale to be worth $100M and exit from. Venture capital will require such a plan - that within 3-5 years you've grown the business to a size that it can exit for $50M+. If that's not the type of business you're running or want to run then venture capital makes no sense.

    A small business loan might help you scale, but there are risks in taking loans as well. I would probably lean towards bootstrapping and trying to increase sales to the point where you can hire, to continue growing the business.