Everyone seems to think that the only way to build a great business is to raise outside investment. You know the drill. Build a prototype, gets some angel investment, grow the team and your audience and then raise a venture round with some big venture capitalists. There are a few, but not very many, people speaking against that as the way to go for many businesses. Well, we have a new voice in the room from a new blog, “My Startup has 30 Days to Live.”
The blog is a sobering (anonymous) account of how taking venture capital took a startup that was having some success and started it down the road to destruction. Of course, the blog is anonymous, so take what it says with a grain of salt. Unless the author decides to reveal their identity at a later date, we might never know if any of what is being written is true. However, it is an interesting read because it is all plausible. I would be surprised if there weren’t startups with similar experiences to those being described in the blog.
This blog shouldn’t scare you away from venture funding though. Instead, it should make you consider whether or not you should consider venture funding for your business. And if you take venture funding, you should remember that your investors might not always have the same interests or risk tolerances as you do. So, make sure you partner with investors that align well with you. And, in the end, make your own decisions. You might be spending the venture capitalists money, but they took a risk in you and you are also investing. You’re investing your time and your life. They have plenty of money. Your life is worth more.