Why Not To Take A Big VC Round Of Funding?

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Diverse Goals

why not to raise huge VC fund? diverse goalsA common conflict among the VCs and the startups are the management goals. Due to economic slowdown, most of the VCs and Angel investors are not getting positive return on their investments and are under tremendous pressure to provide a positive return to the company they fund. This might sometimes force the VCs to take actions to transform the whole business idea that might not be appropriate for the startups at that moment of time, thus leading to slow death of the organization or a delayed IPO. When VCs enter the management with more stake in the company, under such pressure, the goals of the team and the VCs diversifies and clashes, thus creating chaos in the organization.