Do You Really Even Need VC?

If you’re in the more likely situation that you can see how to get your business from $1 million this year to $3 million within 3 years and maybe $8 million within 5 years then VC may not be for you.  VC’s aren’t looking for companies that are doing $15 million in sales in 8 years from their investment.  In this scenario I advocate a combination of bank debt, venture debt, small equity raise ($1-2 million) from high net-worth individuals.  These people would be thrilled with a company that could potentially double or triple their money.  VC’s would not be happy with this outcome.

 

(Full Post: http://www.bothsidesofthetable.com/2009/07/22/do-you-really-even-need-vc/


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Mark Suster 

Mark Suster is a 2x entrepreneur and an investor. He joined Upfront Ventures in 2007 as a General Partner after selling his company Koral to Salesforce.com. He focuses on early-stage technology companies. 

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Filed Under:
Collection: Funding
Category: Choosing Investors