Venture Capital

Is this a good idea?

[Maternity]

Our company is in the 2nd stage throws of looking for a VC or equity partner in order to expand our business. At late notice our bankers have advised they will debt fund the whole project.

Has anyone had dealings with a VC: good or bad and can you give me any advice on whether debt financing is the better option and not dilute ownership of company.

My main concern is over the exit stragety and how do we know we are getting a fair deal?

[etechsupport]

VC are typically looking for a company, which has a realistic possibility of becoming a very large business say within 3 to 5 years, large enough for a major public offering or for sale like a Fortune 500 size company.

You may try with vfinance.com

[Webwork]

If you can get debt funding, carry the charges, pay it off in a reasonable time, remain profitable, grow your business and your profits, and have an enterprise that is worthy of acquisition by a larger player in the future - then why on earth would you seek out VC money?

VC money is just another form of bank loan, only with much higher interest charges (if you own the enterprise).

[Lord Majestic]

Stay away from VCs - if bank is interested to give you money then you ain't high enough risk (and therefore reward) for them anyway.

[etechsupport]

I think it totaly depends upon the size of his business & his further project cost and business plan and objectives.

[Jack_Hughes]

with VCs you will lose a lot of control.