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I speak to many startup entrepreneurs and almost all of them spend a lot of time strategizing the best way to get a big round of financing from angels or VCs. Entrepreneurs need to understand that raising money can be a double-edged sword. On one side, the outside investment can provide much needed credibility, guidance, visibility and oh yeah …. capital. On the other side, the company is giving up a chunk of ownership and control of the company. Most outside investors who write you a big check will also take an active role in the company to protect their investment. This can either be a benefit or a detriment to the founders of the company because the effectiveness of the relationship and the quality of guidance varies widely amongst potential outside investors. Bottom Line. I think entrepreneurs should initially spend time raising revenue instead of funds, and only seek additional outside capital when absolutely necessary. Then when it becomes necessary to look for outside capital, entrepreneurs should try to find funding from an investor that also adds credibility and expertise to the company. (http://biztaxbuzz.com/is-startup-funding-the-holy-grail-or-a-curse/) For more freshly pressed articles about Finance, Business and Law, please go to http://biztaxbuzz.com
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