Not long ago, a friend of mine told me a young entrepreneur who spent a lot of time looking for venture capital and startup funds for the apps he developed. I suggest that entrepreneurs should forget to finance and use his own money or borrow money from his friends or family. In the business I created, I always guide it, and my advice, if you are an entrepreneur, is that you want to do the same thing.
Let us start with the most obvious reasons, don't waste your time looking for venture capital.
How about 99% of venture capital startups won't get it?
When I developed my business, some people suggested that I research venture capital, but I never really paid too much because I didn't want to participate in the exercise, which was a waste of my time. I prefer to lead it and start making money instead of trying to get 1% or less of the financing. I calculated my chances, and a success rate of less than 1% is not worth it, and it will waste valuable time.
I am not willing to give up any equity in my business.
I know that I will succeed in the company. If you are an entrepreneur and you can't think of it or doubt yourself, then do yourself a favor and find a job. But let's assume for the time being that I decided to go along the venture investment route. If I get the funds, I am asked to give up my company's shares, and maybe even control the rights. I don't know you, but my ideas and solutions are mine. I don't want anyone to give up decision making, even if it means that my business injects millions.
Bootstrapping taught me creativity and innovation.
I have already experienced the experience of Lean Day, especially when we started to take off, I had to pay management fees and pay slips, and the margin of error was small. Sometimes I don't get any salary for the whole process. In fact, when I raised the company's business to a sufficient level, one of my interesting moments was to jok that the Chief Executive would eventually get paid. One of the biggest lessons of leadership is that if you are committed to success in your business at all costs, then the pressure to make money will make you - hard - find a way to monetize your ideas and give priority to how to use them Funds and resources at hand.
I like to develop a startup and expand on my timeline.
If you get venture capital [again, unlikely], you will be forced to expand to scale quickly. I happen to be one of those entrepreneurs who like to start from scratch and do big business development. I like to learn all the details of the work I do. More importantly, as an entrepreneur, self-direction allows me to test ideas and pilot plans to see what works and what doesn't. When you get venture capital, you have little room for experimentation, because the pressure is to put money and profits into the pockets of investors, which means that you must scale up quickly.
Not all venture capital firms are broken.
Years ago, when I was thinking about investors - about a minute - I found an article in the Harvard Business Review and talked about the myth of venture capital firms. Some reality is that entrepreneurs must be responsible, because not all venture capital firms are equal. One of the selling points of VCs is that they can provide guidance, expertise and advice that they may need to take off. wrong. Another important myth is that companies with venture capital funds will get amazing financial returns. This is not the case. In fact, the performance of venture capital firms lags behind the market.
I feel very painful when I hear young entrepreneurs looking for venture capital. If you are reading this, this is you, my advice to you is very simple. Don't waste your time. Your time and energy can be better invested in your business, and find paths and solutions to bring your ideas to market.
Orignal From: Why I will never look for venture capital start-up funds
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