Just closed on a multi-million dollar VC financing. What an arduous process that was. Now that it is done, I finally feel like we can build the business.
I've recently heard it said that "you cannot build a business and secure financing at the same time--securing financing requires a full time effort." I can certainly understand where this person is coming from (if I hear the phrase "due diligence request" at anytime over the next month I think I'll be sick), however, it is possible, somehow we managed to do it.
There is also quite a bit of talk recently in the blogosphere reacting to Seth Godin's post on How to Get a Company Funded. Seth states:
...if you absolutely need a lot of money to do a particular business and the terms you'll need to accept to get that money are unacceptable, find a new business.
Not exactly novel advice, but I agree that courting VC money only makes sense to a minority of the startups out there. How do you know if you fit into that minority? I think the underlying rule is if you can't get money from ANYWHERE else--banks, f&f angels, savings, then consider the VC route.
Comments