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Brave Entrepreneur

Hemir Doshi
Monday, February 8, 2010
Hemir Doshi
Pre-VC
Q. Should I raise VC money?
VC money is not good for everyone- but only for certain types of businesses and entrepreneurs.

Several good businesses deliver enough cash flow to allow the founders, employees and their families a very comfortable lifestyle.
Whereas, a VC targets very aggressive returns driven by accelerated company growth. Thus, VC money is useful only if there genuinely is an opportunity to accelerate the pace of scale up with the money and substantially increase the size of the pie.

The author is Co-founder & Vice President IDG Ventures India. He can be reached at hemir_doshi@idgvcindia.com.

Else, raising expensive VC money could create a significant dent (due to lost shareholding) in the stable cash flows and result in an un-happy situation for all shareholders.

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