Must-Know Pros and Cons of Boostrapping and Venture Capital Investment for Your New Venture Explore the pros and cons of boostrapping versus seeking venture capital investment for your new venture
Boostrapping Your Venture
Explore the pros and cons of boostrapping versus seeking venture capital investment for your new venture Boostrapping a venture is a supportive and frugal way of starting a new business while putting in place your idea. With this option, the main advantages are that you have full power over the vision and decision-making process as the founder. The disadvantage associated with bootstrapping is that there may not be adequate monetary resources to bring an innovation or business idea to fruition due to the fund limitations within the company.
Seeking Venture Capital Investment
Explore the pros and cons of boostrapping versus seeking venture capital investment for your new venture If your venture has great potential to bring a substantial return on investment, seeking venture capital may be the best route for financing your idea. The advantages of venture capital include potential entry to a wider market and access to mentors and networks which will be of immense help in launching a business. One of the most common drawbacks of venture capital is the excessive control they have over the business which may conflict with the founder's plans.
The Art of the Pivot
Explore the pros and cons of boostrapping versus seeking venture capital investment for your new venture As potential investors or founders of a venture, there may come times when taking a step back is the right direction to move forward. Known as ' the art of the pivot ', re-strategizing the business plan and re-defining your goals may be necessary to ensure the long-term success of a venture. It is best to identify when the pivot needs to happen and in which direction to pivot as a means of fully using the potential of the venture.