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What Venture Capitalists Are Good For

Published: 9/22/2009 10:04:50 AM

A lot of venture capital partners will say that they add value by bringing contacts to the company, bringing industry expertise or general management knowledge.  London-based VC Nic Brisbourne has a different take.

He says that venture capital is best used to accelerate success.  What that means is that a company should already have some degree of traction in the marketplace when they go out for a significant round of venture capital funding.

Now, many of you are thinking that you don't need VC if you've already got traction in the marketplace.  He uses the example of Google, who already had significant traction in the number of users, but who used venture capital to give it the time to increase adoption before having to execute on a revenue generation plan.

The bottom line is that you should know exactly why you are interested in raising venture capital and whether or not that funding is appropriate to your company stage of development.

Cheers,

Don Jones

VentureDeal

 

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Don Jones
CEO, VentureDeal

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