If and when you raise venture capital

There are many sources of early stage funding: SBIR grants, angel investments, bank loans, credit cards, your friends and family sales in consulting, but it seems that every time someone has a good idea or (he thinks does) that his immediate reaction "I will do this with venture capital funds." Venture capital is definitely a place in the world finance and investing, but it is not the only source still the best source of early-stage capital capital.Venture is best to provide alarge chunk of money for a company that is growing so fast that money is not easy to be covered by revenue generation. The goal is to grow the company so big that no matter how much the company, the VC has everyone gets rich. If they do not raise venture capital if you have a technology that still have in the course of development is not likely to venture the best source of funds. If you are still developing a product and have no income and no resources for revenuenear future, the evaluation of a VC you get such a big part of your capital to take, that you rounds.If only a small portion after subsequent Your goal is to develop your technology, and have left the world so quickly, you will , you can be satisfied with a small return on all your hard work. I have lots of entrepreneurs who met in this way, the feeling when an investment increases, but feel differently if the company is sold and they are left with nothing;Ability to demonstrate the technology and say "I invented, dass" If you sell a product and growing revenue, but desperate for cash, raising venture capital is a good way to lose a large part of your company, because during the raising of money, you are just more desperate and willing to any deal, which is put on the table to take. When To Raise Venture Capital

Seed - if you have a working prototype and a reasonable expectation of severalOrders for production, which can seed ($ 3-5 million) is just right to build their production facilities or your entire product design. If you are indeed a product and have it (I mean real, ready with cash), people willing to buy your product, it may be that waiver of 20% or so at that stage.
Growth capital - if you keep your product and can not simply keeping pace with the demand, a second stage round have sold may be appropriate. Let me be clear, you need this capitalIncrease your production or more sellers to handle more areas to rent or to discontinue sales people. Again, you can then by a further 20% of your capital.
Acquisitions - the best way to grow your business, to acquire your competitors or a complementary service, venture capital is a good source of capital as well. The amount of money you give will depend on the deals you make and where you are.

I see many entrepreneurs who believe that venture capital is the easiest wayCapital did not (see above), or simply are not willing to) their own risk (in this case, a job. There are also other ways to finance your business. Make sure that venture financing is the right way before the fundraiser is a way.

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