2 ms·
If you have a company that has good margins, decent numbers, and is not particularly viral, it sounds like your company is a candidate for a business loan, not
by roasm 14y ago
If you have a company that has good margins, decent numbers, and is not particularly viral, it sounds like your company is a candidate for a business loan, not an equity investment.
At the risk of over generalizing, early stage VC are interested in portfolio investing in high risk / high return companies.
Well-run, non-viral, near-profitable businesses that could use an influx of cash might be better off with a loan that won't dilute the owners' equity in the company.
- pytrin 14y agoInvestment means much more than money, if you get the right investor. Connections, exposure and social proof that can help you expand your company in many more ways than with just money. I can think of many similar companies that weren't really viral but used an investment as springboard to get huge by developing strong customer acquisition channels (for example, Mint).