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But there is one important reason why to get VC money: if you have business model working, VC money will help you (or it is necessary) to hire more people and g

by tlogan 13y ago

But there is one important reason why to get VC money: if you have business model working, VC money will help you (or it is necessary) to hire more people and generate more revenue. Now, of course VCs want great returns but they are also ok with ok returns.

autarch 13y ago
But did you see the bit about preferred investment shares? An "ok" return may be ok for the VC, but it could leave the founders and options-holding employees with very little (or nothing). Contrast this to a bootstrapped company. In that case, an "ok" return can be pretty good. If you're bootstrapped and you own 40% of the company, a $5 million sale is pretty great.