You are here: Home » Companies » Start-ups » Mentoring
Business Standard

Do you really want to raise money?

As soon as you take money in, you're risking other people's cash, says Tech in Asia

Stuart Lansdale / Tech in Asia 

Do you really want to raise money?

Startups are risky. Many fail. Many do not raise capital and many do not survive. There is a lot of hype in the startup world and people tend to think that raising money is the be all and end all for all startups. But why should it be?

The doubt

Startups are businesses. Some businesses make money and some do not. Some need to raise money and some do not.

Sure, you can practice the spiel about the team and the progress to date, when it comes to investors, but ultimately, is it right to take this money?

As soon as you take money in, you are risking other people’s cash.

The friendships
Investments ramp everything up a gear. For one, investors will expect to be kept informed of your progress. Be prepared for criticism and feedback if things are not looking good.

Angel investors may be prepared to write off the cash, but they might become your friend along the way. You don’t want to let them down.

The pressure
Ultimately, investors want to see your company grow. If you cannot show this then there is pressure. You may feel that you have done a bad job of leading the ship.

You may feel a whole lot of pressure that wouldn’t be there if you didn’t take the cash.

Do you really want to raise money?
It isn’t all bad though
Funding allows you to do things that you wouldn’t have been able to do otherwise.

For that, it is a great mechanism to grow your business to new heights. You should really think about the things that happen when you do take on funding though, and question whether you really need it.

.


This is an excerpt from Tech in Asia. You can read the full article here.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, January 06 2016. 13:50 IST
RECOMMENDED FOR YOU
.