I think entrepreneurs should initially spend time raising revenue instead of funds, and only seek additional outside capital when absolutely necessary. Then when it becomes necessary to look for outside capital, entrepreneurs should try to find funding from an investor that also adds credibility and expertise to the company.

1. http://biztaxbuzz.com/is-startup-funding-the-holy-grail-or-a-curse/ May 21, 2013
Is Startup Funding the Holy Grail or a Curse? | BizTaxBuzz
by Trevor Crow
5thAprilIs Startup Funding the Holy Grail or a
Curse?
Posted by Trevor Crow
I speak to many startup entrepreneurs and almost all of them spend a lot of time strategizing the
best way to get a big round of financing from angels or VCs. Entrepreneurs need to understand
that raising money can be a double-edged sword. On one side, the outside investment can provide
much needed credibility, guidance, visibility and oh yeah …. capital. On the other side, the company
is giving up a chunk of ownership and control of the company.
Most outside investors who write you a big check will also take an active role in the company to
protect their investment. This can either be a benefit or a detriment to the founders of the
company because the effectiveness of the relationship and the quality of guidance varies widely
amongst potential outside investors.
Bottom Line. I think entrepreneurs should initially spend time raising revenue instead of funds, and
only seek additional outside capital when absolutely necessary. Then when it becomes necessary
to look for outside capital, entrepreneurs should try to find funding from an investor that also adds
credibility and expertise to the company.