Don't Take VC Funding – It Will Destroy Your Company
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Re: Don't Take VC Funding – It Will Destroy Your Company
#2It won't destroy the company. Rather, it defines it, for better or for worse. And it may remove the connection to the founders' vision for the company.
Re: Don't Take VC Funding – It Will Destroy Your Company
#3It depends, without VC many people will never have any company to start with.
Not all company can be a lean one, some just need external investment to gain speed to survive, some indeed has no needed for VC.
Take it when it's good for you, avoid it if you don't really need it.
Re: Don't Take VC Funding – It Will Destroy Your Company
#4[deleted]
Re: Don't Take VC Funding – It Will Destroy Your Company
#5It won't destroy the company. Rather, it defines it, for better or for worse. And it may remove the connection to the founders' vision for the company.
>remove the connection to the founder's vision
How is that not destroying the company from the founder's perspective? Is there any way to take the "don't accept VC money" relevant to anyone that's not a founder?
Re: Don't Take VC Funding – It Will Destroy Your Company
#6This lecture about post-growth entrepreneurship at the University of Amsterdam lays out some of the issues: https://youtube.com/watch?v=ApINAX7XEqc&list=PL14vcCXv7XVONA...
Re: Don't Take VC Funding – It Will Destroy Your Company
#7It won't destroy the company. Rather, it defines it, for better or for worse. And it may remove the connection to the founders' vision for the company.
>remove the connection to the founder's vision How is that not destroying the company from the founder's perspective? Is there any way to take the "don't accept VC money" relevant to anyone that's not a founder?
Primarily a semantics game.
Your business entity will still exist if you take VC money. However, the VC now has a say in the business and its profits, while their target may not be aligned to the founders' vision, hence a wedge that splits the company from the vision. That wedge may immediately divorce (what most would call a destruction) or it may take time.
Re: Don't Take VC Funding – It Will Destroy Your Company
#8It depends, without VC many people will never have any company to start with. Not all company can be a lean one, some just need external investment to gain speed to survive, some indeed has no needed for VC. Take it when it's good for you, avoid it if you don't really need it.
reading the article might help here
Re: Don't Take VC Funding – It Will Destroy Your Company
#9>So, what about those 10 million Euros? If MagicalUnicorn were your company, would you as a founder personally receive that sweet cash when your company gets VC funding? Nope.
If the company receives 10 millions for 50% of the shares and it becomes valued at 100 millions, you can sell the other 50 % of the shares for 50 millions and let the venture capitalists deal with the business while you enjoy cocktails at the beach.
Re: Don't Take VC Funding – It Will Destroy Your Company
#10It won't destroy the company. Rather, it defines it, for better or for worse. And it may remove the connection to the founders' vision for the company.
>remove the connection to the founder's vision How is that not destroying the company from the founder's perspective? Is there any way to take the "don't accept VC money" relevant to anyone that's not a founder?
Are “destroy the purity of my idea” and “destroy the company” the same?