Tip For Innovators: Don’t Chase VC Money
This is where I am coming from: I see so many innovators that lose all their time and money by chasing Venture Capital (VC) firms, without knowing what they are doing. And without knowing what follows if they are really successful in getting that VC investment.
I am not only talking about the lost time and money when attracting the interest of VC firms. It is also about the pain that is caused when the founders discover that they are just another start-up that has been burned through as part of the process of searching for the next “Unicorn”, a term that is used for a start-up that is valued at more than $1 billion after being fostered with VC money.
Surely not. Insolvency is a painful process and you will age much faster than normal if you have to go through it. There is no easy walk away from facing the consequences of bankruptcy of your company, whether you as a founder have an extended liability into your personal assets or not.
Still, Venture Capital has its own dynamics and people like to ride that storm, just because of the huge upside of such an endeavor. We all know the stories of entrepreneurs with a hot technology and venture-capital funding becoming billionaires in their 20s.
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