January 20, 2012

High Tech: How to raise venture capital

If your business is ready to change the world and has a plan for fast growth, it might be time to seek venture capital. But remember that you will pay a price and give up some control over your business.

The $21 billion in venture capital that American entrepreneurs raised in 2011 provided a big boost to thousands of startups, but came at high prices and gave outsiders a substantial say in those businesses.

"If you take venture capital, you really take a partner in your business,†said Emily Mendell of National Venture Capital Association.

In addition, venture capital is "really expensive money, in terms of the dilution and ownership … given up to have them involved,†said Tom Byers, facualty co-director of Stanford Technology Ventures Program and legendary founder of venture capital firm Kleiner Perkins Caulfield & Byers, in a videotaped persentation.

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