We hear so much about entrepreneurs looking to raise funding that raising capital may seem like the unequivocally right thing to do.
But raising outside funding isnât always the right move for your company. And it definitely pays to do some soul-searching (or perhaps more importantly, analysis of your company and goals) to figure out if itâs right for you.
Here are some reasons why funding is the right move:
đč You need money to grow.
đč Itâll allow you to grow much more quickly.
đč Itâll allow you to take over the market/competition.
đč The moneyâs cheap.
Here are some reasons it may not be:
đ» You donât need it.
đ» It takes too much time and effort that would be better spent on building your product.
đ» You have valuation concerns.
đ» Youâve already reached your milestones.
đ» You have other sources of income.
For a quick take on the reasons to raise or not, take a look at the file below. đ
Whatâs your main goal in raising venture capital? Or alternatively, why is it not the right move for your company? Please share in the comments. đŻïž
Sources: Venture Beat, Due, Jason M. Lemkin