Successful entrepreneurs realize that it’s not about getting the biggest slice of the pie possible because a smaller piece of an ultimately larger pie is what matters. Good companies with large markets in fast growing sectors, solving a problem that hasn’t been solved before, with smart passionate people and orders of magnitude better technology can raise money from just about anyone. The whole point of venture capital though, is it’s not just about the money. It is about maximizing the company’s chances of success. VCs bring a lot of value to the table beyond cash. They bring their networks, they use their expertise, and their involvement in a company has a certification effect (certifying the quality of the company). VCs are also key to attracting other investors who bring more value. VC value add is especially critical to first time entrepreneurs as well, as these are the people who can benefit most from the venture capitalist’s experience, judgement and guidance.
