To VC or not to VC?

That is the question. And I try to answer it.

To VC or not to VC.

Episode 86 of The Op-Ed Page with Elisa Camahort Page podcast is live and was inspired by a Twitter conversation I had with Kimberly Bryant (founder of Black Girls Code, forever-inspiration, currently an investor).

kimberlybryant.eth @6Gems

The more I study and learn about investment vehicles, business acceleration, and venture capital the more cognizant and aware I am that not every founder or business actually “needs” VC. 🤔

Only a day after that conversation, I met with an entrepreneur, and the same topic came up. I have been saying for a long time that I think the vast majority of start-up founders are not served by thinking their first step should be to raise VC funding. They are not served by thinking that raising that kind of funding is some badge of honor or gives them credibility they can get no other way. I’ve done many a presentation on the psychology of money, who gets it, who gives it and why, alternate routes to capital, and even the benefits of running a “lifestyle business”…said with love and admiration, not a sneer.

If you’ve got a big idea, an early start-up, or a small business you want to scale, it may be helpful to listen and consider the following questions:

1. Where is your network strong, and is raising VC funding playing to your strength?

2. How much money do you need to get to a point where you can show tangible customer traction? Not PR traction, not industry traction, but actual beta customer traction? What are the alternate routes to get that amount of funding?

3. Who do you want to be beholden to? And with what expectations? Banks, customers, investors, friends & family, crowdfunding investors or donors… because wherever you get dollars, expectations and responsibilities come with it.

4. What do you want your life to look like in a year, two years, five years? And does your ideal timeline and pace match up with your funding sources?

5. What do you expect to come with raising funding…if any of your expectations are wrapped up in intangible external emotional benefits (e.g.. validation, pride, encouragement to keep going) sit with that for a while and try to separate what you need from what would be nice to feel.

More thoughts around those and other questions are in Episode 86 of The Op-Ed Page podcast, so I hope you’ll check it out…and let me know if it’s helpful to you.