Strength and weakness of venture capital?

i'm doing a project on capital financing. will like to know of the ways a firm can raise capital and the strength n weakness of each ways.

3 ways to raise capital
1) Loans
2) Bootstrapping (self-financing strategy which is usually a combination of penny-pinching, pulling in friends & family to help etc. )
3) Venture capital

Venture Capital's Weakness
The biggest weakness' for VC are:
a) It's an option limited to only businesses that VC firms find attractive. That cute boutique or auto-repair shop idea - won't cut it. Only high-growth, high profit businesses need apply.

b) You could lose control of your enterprise - literally! (See C)

c) Goals for VC may be totally different than your goals (eg: going public vs staying private)

Here's a good article below.

Net Startups Tell VCs: 'We Don't Need You'
http://www.startupjournal.com/financing/...

As far as others methods:

Bootstrapping: My personal favorite but mainly limited it IP (Intellectual Property) or other talents the entrepreneur posseses.
Weakness: Most folks can't afford a manufacturing run or any major capital expense with their spare nickels.

Loans: Good because someone else is giving you the funds to launch something you could never afford.
Weaknesses: You have to a) get approved, b) pay them back and c) if you fail you still have to pay them back or go bankrupt.

Tags

　　Seed Capital 　　Return Investment 　　Real Money 　　Real Estate Investment 　　Raise Capital 　　Property Investment 　　Profitable Investments 　　Private Investment

Related information

How do you raise 1.5 million dollars for start-up capital?

Dear Tim, Below is the 60-Second Guide to Financing Your Start-up Business from Allbusiness.com. If you want more information, I recommend that you read "Raising Business Capital" at ...

If Microsoft needed to raise $250 Million in one of the capital markets...?

Better for whom, Microsoft or investors? From an investmant point of view - you probably know what you will get from a microsoft bond. There would obviously be very low risk of default - probabl...

Is there a way to raise my credit limit on my capital one card?

Just call them and ask if you can have it raised. They will re-evaluate your credit and with good payment history with them, may raise it for you. It all depends on your debt to income ratio and...

Compare and contrast the method of raising capital and finance in an organisation.?

You can increase the capital in the company by: Increasing the amount of shares and offering them to either the existing shareholders or new ones. Ask that the existing shareholders contribute mo...

When talking about raising capital for a start up company, what does the term "Pre-" and "Post-" mean?

Your "pre-" money valuation is what your company is worth prior to taking an investment. If you somehow determine that your company is worth $1M before the investment, that is its "p...

Raising capital for web page.?

What's the question? You can spend a few bucks at godaddy.com and get a webpage opened and then a few more bucks to make the site work and be viewed. What is it you want to do on the site?...

How long will it take to raise my credit limit from $500 to at least $2000 with Capital One?

Hello - I have a credit card from Capital One with a similar situation. I had limited credit history and was given a $500 limit. Id say it was 1 yr from opening the card that Cap One raised my cred...

How can i raise $25,000 in a month legitimately without any or little capital outlay & not working a day job?

1) Discover gold or oil on a property where you own the mineral rights. (Jed Clampett) 2) Become the King or President of some other nation that is rich in natural resources. (King Hussein of Jo...