A useful perspective on venture capital,
You have to ask yourself if venture capital is a realistic financing option for you. Most entrepreneurs who pursue venture capital don’t qualify and merely end up wasting a lot of time (on average from 6 to 18 months) and energy in a futile pursuit.
There are problems associated with attracting venture capital as well. A venture capital firm will in most cases fire the founder and founding team within months of a financing round. The Wall Street Journal pointed this out in a article by Barnaby Federer from September 30th, 2002:
“If you ask a VC what value they add, and you get
them after a few drinks, they’ll say, ‘We replace the CEO’ “,
he said. And that, he indicated, does not vary
with the economic climate.