Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.
When venture capital hurts start-ups
Posted on 21-Aug-2014 19:54 by Bill Bennett. | Tags Filed under: News.


Peter Kerr at Stick reports raising venture capital can hurt a new business. The title of his  Should you bother with venture capital funding…the numbers suggest no says it all. He quotes one investor who points out there is an inverse correlation between the amount of venture capital invested and business success. In other words, the companies that raise the least amount of funds tend to do best.

Kerr lists five reasons why this happens. For me the first one is the killer:

Pandering to VCs is a distraction:

Raising capital demands a lot of time and energy, when an entrepreneur is better off convincing prospective customers to buy – or perhaps learning why they won’t.

And that’s my experience of raising money. Often it can take almost as much effort to raise a sum from investors as it can to earn the same amount as income.


Filed under: Blog, News Tagged: venture capital



comments powered by Disqus




Trending now »

Hot discussions in our forums right now:

The President Of The USA: Donald Trump
Created by TimA, last reply by jarledb on 19-Jan-2017 00:39 (1740 replies)
Pages... 114 115 116


Lost Mp3 collection, how to rebuild on the cheap (legally)?
Created by TeaLeaf, last reply by kickintheeye on 18-Jan-2017 23:05 (18 replies)
Pages... 2


New Ford Mustang
Created by MikeB4, last reply by alasta on 18-Jan-2017 21:18 (18 replies)
Pages... 2


New Unlimited Fixed Broadband
Created by LivingSkinny, last reply by hio77 on 18-Jan-2017 18:55 (53 replies)
Pages... 2 3 4


BP Ultimate Petrol (98) prices
Created by Satch, last reply by JarrodM on 18-Jan-2017 22:05 (31 replies)
Pages... 2 3


Upsize my American houses to McMansion value deal.
Created by kingdragonfly, last reply by richms on 18-Jan-2017 15:48 (14 replies)

New fibre install and SunGenie power supply
Created by littleheaven, last reply by littleheaven on 16-Jan-2017 22:41 (14 replies)

Mountain Bike Recommendation
Created by networkn, last reply by joker97 on 15-Jan-2017 22:14 (14 replies)