By London Gibson-Purcell
Many people may think they have the next million-dollar idea, but the lack of funds and proper guidance could be their downfall. There are multiple ways to get a business off the ground, but getting involved with a venture capital firm could produce a large profit. According to Medium Magazine, “In the past 15 years, the amount of money invested by USbased VC firms into startups grew more than 4x to almost $85 billion dollars last year” (Feng, 2018). This upsurge of money for new businesses could be valuable for the next Facebook. Jumpstarting a business’ growth is a difficult process and having the financial support from a venture capital firm will help.
The new generation of entrepreneurs is responsible for some of the most innovative ideas that influence pop culture. Young business founder, Benjamin Stern, was funded by Mark Cuban on the wellknown show Shark Tank (Stern, 2019). He now runs a very successful company named Nohbo, producing eco-friendly body products. Stern came up with the hit idea in his ninth-grade biology class and demonstrates how your passions could be actualized through VC funding. Being conscious of the possible opportunities for your future business will enable you to reap the benefits provided by venture capital companies.
A concern that is sometimes discussed related to venture capital is that small companies could be taken advantage of, but in many cases this is not true. According to Jason Starr, the Managing Director at Company First, “Some firms make fewer investments and get more involved with their companies, depending on the area of expertise” (Starr 2019). Some firms act as an advisor. In Starr’s company, they focus specifically on finance and marketing strategies rather than product development. Connecting a business with companies such as Company First allows self-management of your creative process with guidance as needed.
In addition, with venture capital you still receive the money needed to supersize the growth of your business. A prime example is the upstart of Uber. “The company has raised $12.9 billion in funding from venture capital in nine funding rounds. But the company has recently been valued at $68 billion” (Mercadante, 2019). The money given to Uber by VC firms maximized their value and launched them into the 5-star company they are today. Although VC funding may mean a loss in complete autonomy for your company, the payoff could be large.