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1. Most venture capitalists seek to realize their investment in a company in three to five years. If an entrepreneur’s business plan contemplates a longer timetable before providing liquidity, venture capital may not be appropriate. Entrepreneurs should also consider:
2. Pricing - Venture capitalists are typically more sophisticated and may drive a harder bargain.
Intrusion - Venture capitalists are more likely to want to influence the strategic direction of the company.
3. Control - Venture capitalists are more likely to be interested in taking control of the company if the management is unable to drive the business.
Lellah answered the question on November 8, 2021 at 07:29
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