Should You Raise Venture Capital | Ep. #693

In episode #693, Eric and Neil discuss the pros and cons of raising venture capital. Tune in to hear why the juice may not be worth the squeeze. TIME-STAMPED SHOW NOTES: [00:27] Today’s Topic: Should You Raise Venture Capital [00:40] Neil still raises venture capital. [00:50] If your idea is huge and you’re trying to swing for the fences, it is hard to do without raising venture capital. [01:18] It depends on what you’re trying to do with your business. [01:40] Rand Fishkin got so diluted while running Moz, that it ended up hurting him in the long run. [01:55] He could have sold the business for a profit, but did not take advantage of this opportunity. [02:20] His VC’s dissuaded him from taking what would have been a great deal. [02:35] VC’s can often steer you away from a clear vision, because they have their own desires. [03:25] Instead of trying to take money to make life easier up front. Think about the long term consequences. [03:50] You could end up in a fundraising cycle. [04:15] Build an audience first, so you have some leverage when you go to VC’s. [04:35] Neil met with some private equity guys in New York. [04:52] Neil didn’t want to do monthly or quarterly meetings, nor did he want to be beholden to investors. [05:15] Raising money is more painful than just working for yourself and getting to call all the shots. [05:25] Read Vivid Vision; it will help you figure out your goals. [05:44] That’s all for today! [05:48] Go to Singlegrain.com/Giveway for a special marketing tool giveaway! Leave some feedback: What should we talk about next? Please let us know in the comments below. Did you enjoy this episode? If so, please leave a short review. Connect with us: NeilPatel.com Quick Sprout Growth Everywhere Single Grain Twitter @neilpatel Twitter @ericosiu Learn more about your ad choices. Visit megaphone.fm/adchoices See omnystudio.com/listener for privacy information.