Should you raise money from VC firms? 99% of you shouldn’t. Unless you have the potential to launch your company into outer space, have calculated all the ways you won’t explode like a rocket, and project growth like a rocket scientist, chances are firms won’t back your plans to launch.
There are other ways to start a company without VC money, including bootstrapping, starting something with low capex/up-front startup cost, government loans like SBA, bank loans, credit cards, crowdfunding, angel investors and self-funding.
There are also 2 to 3 rounds of capital to raise before you even get to Silicon Valley:
3. Angel investors and even micro-VCs.
However, if you are interested in launching a rocket into outer space, which has similar chances as a startup turning into a unicorn, make sure you are an expert in rocket science. Be sure to calculate all the risks and potential failures, reduce those risk factors, and have a clear plan. This plan should include milestones and cracked customer acquisition so you can send tens of thousands of pounds into outer space! Think about this image if you have a startup. Become a scientist and expert. Don’t rely on others for your dream. Start businesses that don’t need $1-5M (that you don’t have) to get off the ground. But if you choose to do it, do it right!
Feel free to ask any questions below about launching a business and whether an investor would back it!