Encyclopedia of Opinion
Question

Should startups take venture capital?

Should startups raise venture capital? This entry sets out the two positions on the question — that startups should take VC funding, and that they should not — weighing growth and resources against control and pressure.

Position 1 of 2
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Yes, startups should take venture capital

This position holds that startups should take venture capital. On this view some markets reward speed above all, and outside money buys the hiring, reach and time that a founder cannot fund out of early revenue.

Position 2 of 2
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No, startups should not take venture capital

This position holds that startups should not take venture capital. On this view the money arrives with a mandate for rapid growth and an exit, which displaces the founders' own aims and makes a sound, profitable business count as a failure.