Misconceptions of Entrepreneurs About Venture Capitalists


 
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Misconceptions of Entrepreneurs About Venture Capitalists
Jaap de Jonge, CEO, Netherlands, Editor
An interesting article for both entrepreneurs, venture capitalists (VCs) and corporate finance specialists is "6 Myths about Venture Capitalists" by Diane Mulcahy (HBR, May 2013). Mulcahy, a former VC and now director of private equity at the Ewing Marion Kaufman Foundation, says that entrepreneurs often feel "as if they are in the back seat" when dealing with VCs. This is caused by six myths or misconceptions about VCs and what they are offering:
1. Venture Capital is the Primary Source of Start-up Funding - In reality, especially for smaller new ventures, 'angel investors' (affluent individuals who invest smaller amounts of capital in earlier stages, for example see Angelist) fund more than 16 times as many companies as VCs do. Also 'crowdfunding' (very small online investors, for example see Kick...Sign up
 

 
Development of Entrepreneurs is Needed about VC
srinivas, Lecturer, India, Member
Steve Jobs, Mark Zuckerberg and Sergey Brin all developed a level of awareness which led them to be successful.
How can that level of pointed and...Sign up
 

 
VCs as a Source of Capital
Steven Cooke, Management Consultant, Philippines, Member
Very good points! It is important for any entrepreneur to recognize that VCs are just another possible capital source. BUT, they have their own partic...Sign up
 

 
The Reality of VCs
VENKATESH, Manager, India, Member
Thanks Jaap for bringing out these realities of VCs. Also thanks to the others for their additional revealing comments.
To me one actual advantag...Sign up
 

 
 


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