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> There are businesses that should raise VC and those that should not. Well said. Raising capital is something that should be considered in the context of the
by akbar501 12y ago
> There are businesses that should raise VC and those that should not.
Well said. Raising capital is something that should be considered in the context of the current business. From a wealth creation perspective, selling a business for $10m with 100% ownership is exactly the same as building a $100m business with 10% ownership.
> Some businesses are not possible without a large capital injection.
Absolutely. Plus, some businesses will be substantially smaller without outside capital.
Conversely, some businesses will grow into nice size businesses without outside capital, but will spend themselves into oblivion if they raise a round.
A lot of thought should go into whether or not the current business is the high growth, large market business that's a good fit for venture capital.