"You are more than three times as likely to crash your startup as you are to ring the NASDAQ opening bell."
Robin Good's insight:
Rachel Chalmers illustrates five key reasons why it may not be such a great idea to get your startup funded by venture capital.
- Not getting a fair hearing
- Rising capital means losing the YOU and giving in to financial interests as the primary drivers
- The majority of VC funded companies will not ever generate any venture success
- You are not going to have full control anymore
- Venture math is a harsh mistress
Key advice: VCs are optimizing for a very specific outcome (making a large as possible profit fast). Share that alignment, or don’t take their money.
Chances to convert a startup into a VC-funded success, are not very high, if you look at the numbers. But worse than that, is what you have to endure and give up to achieve that goal.
Full article: http://modelviewculture.com/pieces/five-reasons-not-to-raise-venture-capital
Reading time: 7 mins.