VC wants to make money off of your work/startup/company.
VC makes money using the given terms.
When it comes right down to it. The money they "give" is not given. It is a loan with terms and conditions. You need to be aware of this. You need to know what a loan is. It is money you are borrowing that you must pay back WITH INTEREST. Find out how much interest that is.
"It’s like we need a finance 101 course for entrepreneurs"
Debt money is bad. I realize a lot of people will tell you that this is how the world runs, or this how they run their business, or I got successful in business taking out a big loan, etc and so on. Like the gambler, they don't tell you about all the losses.
It is just impossibly more complicated than this. Financing a company with venture capital is no time to break out the folksy wisdom. "Well, it's just a loan with interest". Good lord, no.
VCs are not the driving force behind convertible notes, entrepreneurs usually are (and for good reasons).
Yes, VCs like to make money, they'd even like to make it of your work/startup/company but the odds are such that they likely will not.
So they will invest in a company for equity rather than as a loan that carries interest and that you can pay back at your leisure, unless it is really early days and so very hard to assign a value to the company (not that that is much easier later on). I Really do agree that we probably need a finance 101 for entrepreneurs, and you probably should enroll. Debt is not necessarily bad, giving out a chunk of equity in return for funds is not necessarily bad. No more than a hammer or an axe are bad.
VC wants to make money off of your work/startup/company.
VC makes money using the given terms.
When it comes right down to it. The money they "give" is not given. It is a loan with terms and conditions. You need to be aware of this. You need to know what a loan is. It is money you are borrowing that you must pay back WITH INTEREST. Find out how much interest that is.
"It’s like we need a finance 101 course for entrepreneurs"
Debt money is bad. I realize a lot of people will tell you that this is how the world runs, or this how they run their business, or I got successful in business taking out a big loan, etc and so on. Like the gambler, they don't tell you about all the losses.
Save your money. Keep your work/startup/company.
http://www.gamesradar.com/nintendo-doomed-not-likely-just-ta...
I've read that Microsoft has always had enough money in the bank to operate for a full year without making any money.