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Ask HN: Those who went the venture capital route with their side project…
How did you come to that decision and how did it go? How was the transition from side business/project to pitching it to investors? How did you find investors to talk with? Do you regret anything?
Not looking for amazing success stories, just some good discussion.
Maybe your story isn't about a side project, that's fine too. I only used that as an example since that's where I'm at.
I'm in the middle of deciding if I should try to go the c-corp route and eventually raise money (vs. keeping it small for as long as possible with an LLC). I kind of want to try a c-corp just to say I've tried.
I know nothing about this topic, so any educational advice would be great.
- ezekg 10y agoAlso, I would like to put an emphases on "eventually raise money", as I know that in order to do that you need profits, a user-base or _something_ to pitch investors on. I know there's no such thing as a magic bullet here. I'm also not at all implying that I will be successful, whichever route I move towards.
- samblr 10y ago+ What home work about VC-firm/partner was helpful before approaching VCs/Investors ?
- partisan 10y agoUnless you need massive and immediate growth in order for your company to be successful, I would be weary of taking someone else's money. Your investors have one goal: make a return on their investment. They don't care about your hopes and dreams or whether you will be happy in the long run. It is business. They will pressure you to make those returns happen and it won't be enjoyable for you. Really understand what that relationship will look like before signing on with anyone. Of course, YMMV.
- nnn1234 10y ago+ VC is expensive capital Don't second C Corp just to say you have done it. Bad idea. If you have a business that looks like all it needs is capital or you think a large cash infusion will help if grow exponentially then and only then do VC
- ezekg 10y agoThanks. I should have worded the OP better. I didn't mean start a c-corp just to say I've done it, I meant go down the VC route (I guess that includes a c-corp, but not exclusively) once in my life. Why do so many entrepreneurs seemingly default to VC if it's such a bad idea?
- nnn1234 10y agoaaah got it. Lets look at the numbers I hope you will agree with me that Number of businesses that get started>> Number of business in hot sector>>number of businesses that get angel investments> number of businesses that raise VC If we are being bombarded by tech news and most of the press releases are tech startups raising capital in SV or other valley like places, then the "so many entreprenuers raise VC " idea gets traction Also the process to get private capital and the dumb money at a high ( albeit cooling off a bit)
- nnn1234 10y agoAlso we are building a co creation platform. Why not start there? www.crowdraising.co