Advantages and disadvantages of venture capital?

Advantages:

  • They can provide large sum of equity finance
  • Able to bring wealth and expertise to your company
  • Easier to secure future funding from other sources
  • The business is not obligated to repay the money

Disadvantages:

  • Lengthy and complex process (needs detailed business plan, financial projections and etc.)
  • In the deal negotiation stage, you will have to pay for legal and accounting fees
  • Investors become part owners of your business - founder loss of autonomy or control