Venture Capital: The Good, Bad, and Ugly

A veteran entrepreneur tells you what you should know about venture capital before you sign on the dotted line

There often comes a time in the life of a startup when the founder must decide if it’s better to own a small piece of a big pie. That’s because bootstrapping can only take you so far. When you’re lucky enough to reach the stage where you have a product that customers really want, a business model that works, and a management team that is itching to take over the world, start weighing your options.

Raising millions through venture capital allows you the luxury of not having to watch every penny. You gain experienced investors who can help you focus on the big picture and plan your growth strategy. But there are many strings attached to this money—it’s practically like getting married.

Let’s start with the good that comes with venture capital money.

By Vivek Wadhwa

Full Story: http://www.businessweek.com/smallbiz/content/jul2006/sb20060717_402629.htm?chan=smallbiz_smallbiz+index+page_today%27s+top+stories