SAYING GOODBYE TO THE ANGEL AND HELLO TO…
Is it Time to Seek Venture Capital?
So, the good news is your company or business is growing. Growing so fast that you’re about to outgrow your Angel Funding. And now is the time a large infusion of capital could take you places. So, do you abandon your Angel Funders?
They were there when you needed them most. They could also be friends or family that helped your business or company when you were just getting started. But you need a larger source of funding to ensure your growth. If you could just secure $2 million.
So, the $2 million question: Should you seek Venture Capital?
You might want to consider a couple of things before you venture forth. A common practice in venture capital equity is unwanted or unnecessary management personnel coming on board to help you manage your growing enterprise. Hmmm…do you see conflict on the horizon? Be aware that many times these management additions are a prerequisite to receiving funding.
Then there’s that little thing called the pre-money valuation. Actually it can be a pretty big thing. Venture capitalists have the money so it’s no surprise they want a stake in your business. Chances are it’s a pretty big stake. After all, they want a way to safeguard and profit from their investment.
Despite all this, let’s say you go ahead and suddenly you’re faced with a capital spending need, a business expansion, or personnel changes. You’re ready to move, but find you have to consult with the venture capital firm before making any decision.
Venture capital gives you potential access to large sums of money. Before you decide to take the leap, why not take the time to talk to someone who’s been there?
Schedule a Consultation Download 2-Pager