Finance & Operations

What Are the Best Reasons to (or not to) Raise Funding?

August 8, 2012

Deciding whether to raise funding? There are some crucial factors to consider before you determine venture capital investment is truly the right option for you.

For any early-stage company looking to grow, outside investment can provide numerous benefits in addition to the obvious influx of cash. But the decision to raise funding shouldn’t be made lightly. In fact, as OpenView Associate Ricky Pelletier explains in this short video, there are good reasons to and not to raise.

A venture capital partner can give you access to invaluable experience in addition to capital, and that may be especially key if you are attempting to attack a target market with a limited window and you need the knowledge and resources to do so quickly. It’s important to consider dilution, however, and if an influx of capital isn’t absolutely crucial to success and achieving your company’s goals, there’s no reason why you should raise funding simply to have more capital on hand.

Ricky Pelletier

Partner

<strong>Ricky Pelletier</strong> focuses on identifying and analyzing various market and investment opportunities. As a Partner, he works with other members of the OpenView investment team to structure and conduct diligence on new investments.