Raising Venture Capital Has Advantages and Disadvantages
When you’re raising funding for your company, your biggest decision involves whether to seek equity or debt financing. Venture capital is a type of equity financing. It is significantly different from traditional debt financing, which usually takes the form of borrowing funds from a bank or other lending institution.
The need to qualify for equity financing is a significant disadvantage to seeking funding from a VC firm. These firms look for investment opportunities in companies that are growing rapidly and …