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Yes, taking VC money is a double-edged sword; that's basically the long and the short of it. However, it's a great thing that investors will line up to throw m
by dgreensp 14y ago
Yes, taking VC money is a double-edged sword; that's basically the long and the short of it. However, it's a great thing that investors will line up to throw millions at a nascent tech start-up, especially if you want to spend your life building big companies.
VCs obviously have a lot of power and influence in the Valley because many businesses need a big chunk of start-up capital and they have it, and they own fractions of many companies and sit on boards. The fact that they are influential isn't a reason not to associate with them.
Bootstrapping your business and paying your engineers' salaries out of your revenue rather than investment is admirable. I'd like to try it sometime.
The main thing to recognize is that when you take money from investors, you are claiming the business is a good business. Successful fund-raising is not derisking, it is you explaining the risk and why you will succeed.