- Enterprising
- Pages
- Why do Startups want Venture Capital?
Why do Startups want Venture Capital?
Early-stage startups fundraise from VCs for a few reasons:
Access to Capital
Growth Strategy
Networks
Market Validation
Scaling
1) Access to Capital
Startups need capital to rapidly scale. VC provides the equity for product development, hiring and customer acquisition.
2) Growth Strategy
VCs offer mentorship & strategic advice. Many VC firms have partners that are former entrepreneurs to help startups grow.
3) Networks
VCs have networks for connecting with potential customers, finding key hires, or partnerships. At B2B companies, networks drive sales.
4) Market Validation
Getting funded from a VC firm serves as a market signal, showing the startup has high growth potential.
5) Scaling
With venture capital, startups can scale faster than on their own. This can make all the difference in competitive markets.
Careers in Finance
If you’re interested in Tech and Finance roles, join our Job Board