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Bootstrap Vs. Funding (Discussion)
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JohnPhilipGreen said – Wed, 05 Mar 2008 03:08:32 -0000 ( Link )
I think the business plan should dictate the funding. Great companies were built both bootstraped and VC-backed. Even more companies failed with the wrong capitalization.
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RLLillis said – Wed, 05 Mar 2008 05:33:47 -0000 ( Link )
I’m currently in a venture class at Kenan-Flagler Business school at UNC Chapel Hill and we just discussed this a week ago. It depends greatly on what type of venture you’re going into and exactly how much control you’re willing to give up. I used to work for a Venture Capital fund and the most common misconception is that VCs just give you money. If they give you money they have a seat at the table of every decision you make, especially who you hire for a management team, funding models, etc. Now, they also give you access to a huge network of people. You just have to see where you are, what you need and what you want… It’s an individual decision that has consequences either way. Best of luck!
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aliasaria said – Wed, 05 Mar 2008 18:32:13 -0000 ( Link )
I think the state of the market must also be considered in this decision. When there is high appetite for investing in pre-revenue startups, you can get away with more. There are times (right now, 2008, in Canada, for example) when pre-revenue startups will have a much more difficult time getting a good financing deal—so one might choose to change their strategy.
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