famous venture capitalist Jan Hammer recently in the foreign news website published an article referred to a question: "if I choose to raise public business, the future can replace the wind?" he risk from the perspective of investors given their views for the public to raise a positive description grand blueprint, make people feel after entrepreneurs have set foot on the ship to raise public. But I black horse to share this article, the author as a software engineer from the entrepreneur, his point is clear: do not go to the public to raise the business!
may say this is a bit like to raise public labels, but people like Jan they only see the raised platform successful entrepreneurs, but paid no attention to those behind the success of hundreds of failed to raise the case. And he said that the examples are through the Kickstarter platform to raise the public on the sale of hardware and the success of the enterprise, did not mention the congregation raised equity.
do not misunderstand me, all the chips in the hardware, art and film and television work is indeed very successful, but the software technology entrepreneurs in the Kickstarter platform to raise public platform. However, the software is more suitable for the public to raise equity. I am involved in the congregation to raise public equity entrepreneurs expressed great respect, especially Crowdcube’s Darren Westlake. On one occasion, his software is still in the conceptual stage when I talked with him about the challenges raised, and now Crowdcube platform to raise public equity has made great success.
there is no doubt that many start-ups in various types of public platform to raise a good results, but the problem raised by the public with negative news. The early start-up companies want to survive, hoping to get the next round of financing, so entrepreneurs are reluctant to allow investors to see any negative news about the business. Want to be able to make the surface of positive content, can create a milestone to continue to create. No matter how attractive it can be, as long as there is hope that the entrepreneurial life.
below is that I think all the chips for investors is the reason for the negative news:
1, all the chips to start your business is not the best start-up companies
if you can find other financing means, will not go to the public, which indicates that your business is not enough to attract the eyes of angel investors and venture capitalists.
2, the congregation raised immature
chips have so far proved to be very effective business model, but also need a few years to wind investment, angel investment has become the mainstream of the investment community.
3, all the chips is the last choice for entrepreneurs
when entrepreneurs really can not get the money VC and angel investors, they can only turn to the public to raise money, hoping to be able to get the last one before the end of the company’s customers to vote