Over the course of my career I have done the bootstrap venture, the venture with significant VC dollars and the capital efficient venture (sub $5 million). Through all of these experiences I’ve learned lessons about capital raising, and more specifically, the cost of doing a large VC round. I’m not about to claim that VC money is always a bad idea, but before you take your startup on a tour of Sandhill Road, here are five reasons NOT to accept the big paycheck.
You’re the rule – Let’s acknowledge this and get it out of the way: Occasionally there’s an exception as to when it’s smart to raise a large VC round. Most startups that go after this kind of capital are not in that camp.
A great example of this is when a company is perfectly positioned, has a proven model and by “throwing gas on the fire” it can move to dominate a position in a marketplace. These are the stories we read about when the big hit occurs. These deals are the exception, not the rule, but they’re the ones that get the majority of press and attention.
To read the full, original article click on this link: 5 reasons not to take a big VC round | VentureBeat
Author: Chad Little
