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How Some Venture Capitalists Try to Rob You Blind:

For small or struggling businesses finances are crucial. If you do not have the finances you need you will not be able to run well.really you will not be able to run at all. You need money to stay in business. Everything costs money. However, be careful where you get that money from.

You have to pay your employees, you have to buy equipment, you have to buy or rent a place to run your business, you have to pay utilities, you have to advertising etc. There are many, many costs which all go into making your business be successful. If you do not have the right amount of money, you will probably not stay in business. The truth is it takes money to make money.

In order to get enough money you probably will not be able to pull it all out of your pocket. You can enlist help from family and friends and you can try to raise some on your own, but you will probably not raise enough. Probably you will not even raise close to enough. You need financing from somewhere else and there are many places where you can get it.

One place to get outside financing is from venture capitalists. These capitalists are people who will invest in your business to get high returns or to get ownership in your company through stocks. They take big risks hoping for high returns. Because of this, they will probably not invest in companies that do not look promising and do not look as though they will provide such returns.

There are some venture capitalists who will try to "rob you blind." Not all venture capitalists can be trusted. You have to be careful. Some of them will take advantage of you in order to get higher returns or more ownership in your company. You have to be careful that you do not let them do this.

The way that these capitalists will take advantage of you is by making you desperate. They will tell you that your money is being sent but they will not send it. This will become a pattern. They will tell you they are sending it but they will not send it. They will keep you going like this, stringing you along, until the last minute when you absolutely need the money. Then they up the stakes, and what it will take for you to get it.

Once you are desperate they will ask for more in return. Because you are desperate there is not much you can do. They will either ask for higher returns or more stocks. This not good because both could be bad for your company. The higher returns you are giving them the more you cannot keep for yourself. The more stock they have the more ownership they will have of your company.

This is why it is very important to search out venture capitalists and find one that you can rely on and trust. You should not get a venture capitalist on a whim, you need to really know if they are someone who is honest and going to work with you will, not try to take advantage of you.

You want to do well in your business, not be robbed of what you have worked so hard to achieve. Getting in with a crook venture capitalist would not be good for your business. You have probably worked hard to get where you are and put a lot in to your business, you do not want someone to come along and ruin that for you.

If you need help financing your business venture capitalism is just what thing to consider. It could be a great thing also. But if you do not want to try it, you can always try to find other outside sources to help finance your business other than a

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