When someone gives you a big check of money, it should be obvious that there will be strings attached. Venture capitalists operate businesses – they are not-for-profit institutions. They expect to make a significant profit within five to seven years. Given their priorities coupled with your beliefs, your style of work and your attitude, there may be reasons that venture capital doesn’t make sense for your business.
Below are some reasons not to raise venture capital. Take everything below with a grain of salt. These are reasons some people have cited based on their own experience in some cases so a sample size of one does not make for a trend. Ultimately, every venture capitalist and venture capital firm is different.
With those necessary caveats in place, here are some reasons that entrepreneurs may not want to raise venture capital.