From the course: Foundations of Raising Capital

All companies and their needs are different

From the course: Foundations of Raising Capital

All companies and their needs are different

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- Over the last several years, you may have seen an increase in the amount of press about startups. Usually these headlines focus on a company raising millions of dollars in venture capital or being acquired by a larger company. Those headlines are exciting but they're the exception and not the norm. While more than $100 billion in venture capital is invested every year, only a few thousand companies actually received that investment. So if we're talking about just pure numbers, the odds are against you, but that doesn't make it impossible. With the right business model and a great pitch, you could receive venture capital investment. And even if you don't, it's no reason to get discouraged; venture capital is only one form of capital. It's a very specific form of capital that comes with sky high expectations and is only suitable for high growth, scalable tech companies. Before there was venture capital, there was debt. And to this day, debt in the form of loans still represents one of the most common forms of capital. When you take on debt, you're promising to pay that money back with interest through the revenue earned by your company. Some capital like venture capital trade some level of ownership and control of your company for cash. This has become the most common form of investment for most internet or tech startup companies. But you can also receive capital without giving up ownership or control of your company. Sometimes that capital doesn't even need to be paid back. This is the case with grants or even some pitch competitions. Raising capital may feel daunting, but there are a lot of ways to raise capital for your business. And some of them are going to be better suited for your particular situation than others. So it's your job to understand all of your options and pursue the most realistic and best option for you to raise capital for your business.

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