Venture capitalists
Pros: They've got a lot of money. Like bankers, venture capitalists aren't handing out money from their own wallets, so you can seek much larger amounts that you would get from a bank loan - if you can find a VC firm that specializes in your industry.
Cons: It could be a waste of time. VCs take only a handful of promising companies and will scrutinize your venture as thoroughly as banks will.
"Time for a sanity check," Siegel says. "Not everyone is a viable VC prospect. You're looking at some very expensive capital. They deal with higher-risk ventures, and so they deserve a higher reward." Be prepared to surrender partial ownership of your company if you score a deal.
NEXT: Angels
| Sponsored by |
More Galleries
Bricks that grow from microorganisms, household garbage turned into art, three-wheeled bike-cars -- these startups are redefining urban living. More
These five entrepreneurs took their blue collar experience and used it to launch innovative businesses. More
Whether curating the perfect gift or finding a pet-sitter, these startups offer time-saving services that might just seem like holiday magic. More
Sponsors
Top Stories
- South Africa's first black female winemaker ready to go it alone
- Want to clean up India? Turn trash into free Wi-Fi
- Drones, robots, DIY toys shine at Toy Fair
- Trump refuses to be a Bleacher Creature
- She's recycling CO2 to reduce oil dependence
- He just pitched to Richard Branson and won!
- America's banks are really, really healthy
- Senate finally unveils secret health care bill
- 'Serious questions' raised about Kushner family conflicts
- Colbert to appear on late night talk show in Russia
- Why are White House briefings heard but not seen?
- 5 questions to ask before combining finances (or not)