According to. Nicole J. Desharnais who has 15 years expertise in representing equity firms, while there are many other options of monetary sources that they can tap on, the majority of these business people cannot get cash from banks and financial lenders due to the risks include.

1. Do not let your Dreamruined by Venture Capital

2. New Start-ups may not be ready for speedy scaling
Once you get the venture capital for your business, VC partner will assume you to use your raised
capital rapidly. The time given by the VC partner to your company 18 to 24 months and the most
common perception is that you understand your customer model. It is really not that easy until
unless your sales and marketing operations scale up to their double and triple size.
Now consider the case that when you invest heavily in your customer acquisition operation but the
sales don’t come as per the expected rate. Your revenue growth from each dollar of investment
should be increased to get your job done.

3. Your VC expect outstandingreturns fromyour business
Your venture partner push the companies hard to give outstanding returns and in
failing of this your VC will increase the burn rate and your company will run out of cash
and your growth rate will be back over 100 percent.

4. Things might not workwithyour investor
According to. Nicole J. Desharnais, your professional investors may underestimate your
ability to run the company and most entrepreneurs do not anticipate this and may fail to
cope up with the decision VCs made. Your VCs will try to get his investment by selling your
company and it will difficult to change his perception when is the right time to sell your
company. Your VC should understand the criticality of your business patiently and helpful
enough to understand problems efficiently.

5. You have to adhere your investor’s timeline
The main resources for VC to raise funds are insurance companies, university donations
and the limited time span for those funds are 10 years. In general, VCs invest the capital
for initial five years and yield their revenues during the second five years of the fund. So
there will be a huge pressure from your VCs to return the invested money to the investors.

6. Risk factor will be associatedwith your Payout
According to. Nicole Desharnais, VCs always prefer to structure the investment
with their preferred favored stocks and that truly in the favor of venture investor.
That clearly shows the amount of money goes to the investor before you. The
payout will be done to investor and the balance will be shared with you and
other stakeholders.

7. More Information Please
Visit us...
http://nicoledesharnais.blogspot.com
https://pinterest.com/nicole_desharna
https://www.crunchbase.com/person/nicole-desharnais
https://nicoledesharnais.wordpress.com
https://twitter.com/njdesharnais
https://nicoledesharnais.tumblr.com/