It's your business.

If you want to know why everyone expects to exponential growth to happen at month 3,

I’ll tell you why:

Venture Capital.

Venture Capital arms companies with lots of cash up front.

Those startups can leverage that cash to make bigger investments,

That allow them to hit above their weight,

At an earlier stage.

This works well for Venture Capitalists,

Because they can bet on dozens of startups at once.

So, by providing the capital to take one big bet for each,

They’re able to make money when 1/10 of the bets pays off.

But if you’re a startup founder, your risk profile is different:

• You only have one company to play with.

• Your investor is incentivized push you to take all the capital and make a big bet.

• (Because it gives them their best chance of big success)

• But doing so also puts you at greater risk of returning nothing.

All this to say, Venture Capitalists can be hugely helpful to your business,

But make no mistake:

Their incentives are not the same as yours.

And if you use VCs to fund your business, remember:

It’s YOUR business

It’s YOUR decision

It’s YOUR BUTT on the line

And it’s YOUR call on if they get to come along for the ride.

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