Before You Go After Venture Capital

You have, not just an idea, but a plan in action – for a viable, scalable company.

But, you need more capital and bank loans won’t suffice.

Venture capital may be just what suits your needs. However, it is a move that shouldn’t be taken lightly.

Rudina Seseri of Fairhaven Capital and Monica Dodi of Women’s Venture Capital Fund share advice on what you need to know before taking VC dollars for your business.

Different from loans, venture funding requires founders to give up stake in their company in exchange for capital.

Know the valuation of your company and what percentage of equity you are willing to give to potential investors.

“Cash accepted should be meaningful to you as a founder as well as to the investor,” says Seseri.

If you are confident that the cash will help your company move forward while earning returns for your investors, venture capital may be worth the tradeoff.

Venture capital can come with more strings attached than equity.

“Not all money is created equal,” Seseri adds.

Investors may want a hand in strategy development and decision-making. For entrepreneurs who want to maintain full control, this can pose as an issue.

Still, Seseri encourages women to pursue venture capital and negotiate terms that satisfy them.

“If you’re a woman and you have a big idea, you shouldn’t be scared of raising money from venture capitalists.”

Bonus PINK Link: Love being the boss? Check out this story on risk-free ownership.

Have you considered VC dollars for your company?

By Shaina Ali and L. Nicole Williams

“If we could sell our experiences for what they cost us, we’d all be millionaires.” Abigail Van Buren