Venture Capital - A Realistic View of Your Relationship With Venture Capitalists

You have a great business idea and havebe running them. Remember, the goal of the VC is to
implemented it. You want to go to the next level,make money. To do that, they need the company to
but don't have the capital to do it. The traditionaldevelop and go public quickly. Anything that gets in
answer is to seek venture capital funding. If a VCthe way of that is going to be a problem.
fund likes your business idea, you may be able toThis attitude can be a real problem for some
bring in the large amounts of money you need tobusiness owners to accept. Let's be very clear. When
become the next Google. Before you take that step,it comes to venture capital funding, you must make
however, it is vital you understand how thea philosophical choice. If you view the company as a
relationship with the venture capitalist will work.way to make a lot of money in a fairly short time,
The goal of every venture capitalist is simple - tothen venture capital is definitely something to
make a very big return on their investment in aentertain. If you view the company as more of a
company. Everything else flows from this simplelong term project or "my company" or a vision of
motivation. When you think about bringing in fundingyour dream, then conflict is going to happen when
and have questions about how things will happen,the venture capitalists questions anything that doesn't
just think of this when forming answers.constitute progress in getting the company to the
How will things change when you take on venturemarket as quickly as is reasonably possible.
capital funding? Well, every VC is different. ThatMany business owners seek venture capital funding
being said, there is going to be another voice in thefor the simple reason that they believe it is what
room. When a VC pumps in untold millions into athey are supposed to do. If you don't have the right
company, they are going to voice their opinion aboutmindset for the expectations of the funders, such a
how things should be run and, perhaps, who shouldmove can lead to real disaster down the road.