What I’ve Learned about VC-Venture Capital Funding
Venture funding has brought me a mixed bag of experiences. The ride hasn’t always been as
smooth and has brought its own bunch of challenges in its wake. It demanded quite a lot of time-
commitment. It hasn’t been fruitless, though. Far from it. I have learnt a few tricks of the trade in
the process. Following are some of the things I’ve learned about venture capital funding.
VC funding is not something you should take lightly
The relatively smooth looking ride was not without its own sacrifices and challenges. Although
the idea was floating around my mind for quite some time, it was when I actually got my foot
into the water that I got to taste the real thing. You should be ready to commit to it whole-
heartedly for a few months in the beginning to gain benefits you are aiming for. If not, you will
be better off staying away from the thing.
I VC funding traction trumps every other thing
I waited unusually long before going the VC funding route. This was quite longer than what
most people do. I just waited so long so that I get considerable traction (not anything huge
though) in a larger market. Although it may not be the best thing to do for someone else, it did
work for me in the sense that many VCs started approaching me due to the traction and the
track record I had accumulated during this period.
Dabbling into VC a little earlier might have worked better?
I am never sure about this thought. But it does comes in my mind every now and then. Would
venturing into VC funding a tad earlier while had made a difference? Say, when the search
results were around one million instead of waiting for them to cross something like the 7 million
mark? Not so much when considering the larger search picture. However, businesswise, it might
just have been a better decision.
When raising between significant milestones, your momentum is unclear and people fail to
observe any distinct progress. When you raise after reaching a milestone people care about, you
have momentum and people infer your action in your favor.
You have lot of choices available
I talked to dozens of firms, seed funds and angels before narrowing down upon one. And these
were just a fraction of the number of them available out there. Choosing someone you trust,
respect and find to be a better fit to your requirements is always the best bet than going for a big
name that you don’t personally know or connect to on a personal and professional level.
Choose your VC as you will a co-founder
You should always make sure that your selection is done with care. Just like how you will
choose a co-founder for a Start-up. Your VC will be with you for the long term and have
considerable equity stakes and other terms. You do have choices. Use them wisely.
These are just a few things that I learned about venture funding. Hope these insights will be of
some help to someone to make the most of their time and resources.