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,â€ said Emily Mendell of National Venture Capital Association.
In addition, venture capital is "really expensive money, in terms of the dilution and ownership â€¦ given up to have them involved,â€ 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.