5 disadvantages of seeking venture capital

As a new or young company, seeking to fund your startup, it seems pretty straightforward that venture capital would be a good option.Yet, while there are many advantages to it, we're going to look at five disadvantages of seeking venture capital, and why it might not be right for your business. #1: You may lose controlBefore you get venture capital, you (and your partners) have total control of your startup. After you get funding, you transfer part of your control to your investors.This mea...
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5 advantages of seeking venture capital

You're beginning a new company and as such, you're most likely looking for funding. This is where venture capital comes in.What is venture capital? It's the financing that is invested in startups. It's usually a high risk investment with the potential for unlimited growth.Most people who provide venture capital do it on an ongoing basis. In other words, that's their business. To help you decide whether or not you should seek it out, we look at the five advantages of seeking venture capital. ...
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Startup Tips: Introduction to Venture Capital

Venture capital is a way of financing a startup, especially when seed rounds and investments from angel investors run dry. In a nutshell, early stage businesses with high growth rates receive funding from established firms through a dynamic venture capital ecosystem. This ecosystem can be intimidating for many new entrepreneurs, so knowing where to start and best practices is key to navigating the VC ecosystem. What is Series A funding Series A funding is commonly known as the first step on the ...
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Why "no" is the hardest word for VCs, and how to boost your chances of a "yes"

Startups with high growth potential spend money faster than they can make it, which means early stage founders have to put a lot of time and effort into seeking finance. Every year thousands of entrepreneurs turn to venture capital (VC) firms, yet raising money from VCs is a challenging process and the odds of success are very low. "But if it provides any consolation, it's often as hard for VCs to say "no" as it is for founders to hear it," says Kjartan Rist. Here, he shares the reasons a VC may...
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10 ways women entrepreneurs can outwit “mansplaining” investors

The chances of your startup getting funding from venture capitalists are already very low—and they're even lower if you're a woman. In the male-dominated world of venture capital, gender stereotyping and bias create additional obstacles for women. Not only do female founders land fewer deals, they also get smaller amounts compared with their male counterparts. As a female CEO and investor who helps businesses scale and raise funds, Alexandra Stanton shares here some of the advice she gives femal...
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10 ways to practice your pitch presentation when seeking investors

Very few startups are successful at raising venture capital and any entrepreneur who's faced the challenge of pitching to investors knows how grueling the process can be. There's no experience quite like it and to stand a good chance of success, you need to be as prepared as possible. For entrepreneurs raising funding for the first time, the best thing to do is learn from others who have already been through the process and get their advice. With that in mind, ten successful entrepreneurs s...
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Raising venture capital can have some downsides—here’s how to avoid them

There are numerous ways to secure the funding you need to get a new business off the ground. When it comes to growing the business however, convincing venture capitalists to back your business is often seen as the ultimate form of validation. The fundraising process can be a challenging, time consuming and costly endeavour. And while a successful funding round can bring significant benefits, there are also some potential downsides, writes Adam Cragg. To help you make the right choice for yo...
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How #MeToo has forced venture capital to become more inclusive

The male dominated power structure in Silicon Valley has not only been making it hard for female founders to raise funding, it's also led to them facing inappropriate advances from male venture capitalists. Although recent figures highlight the "overwhelmingly male, overwhelming white" nature of the industry, some of that is finally changing as venture capital firms start to hire female partners, writes Kimerberly Weisul. Here, she looks at the sexism that's been rife in Silicon Valley's venture...
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We just raised $21 million. Here's how to spend a massive funding round.

Startup fundraising can be a long, hard slog and it may be tempting to celebrate a successful funding round by going on a big spending spree. However, it's important to remember that venture capital isn't free money. Investment comes with strings attached and a new set of responsibilities. So while you may have to spend money to make money, that doesn't mean you should spend it like a drunken sailor on shore leave. Here, Avi Meir shares his top tips on keeping your costs under control and spendi...
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Why venture-backed startups should have a bootstrapping mindset

It's easy for high-growth startups to burn through a lot of cash. You need to increase your burn rate to ramp up your growth, yet running out of cash is one of the main causes of startup failure. So, while it's tempting to go on a spending spree when you've raised venture capital funding, it's important to control your costs. And by monitoring your burn rate, you can calculate how long the cash will last and make sure you use it wisely. Here, venture capitalist Sagi Paz shares how "to minim...
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