Venture Capital Pros and Cons, What You Need to Know

1. Venture Capital Pros and Cons, What You Need to Know As with any new business, start up funding is a serous consideration. There are numerous pros and cons related to choosing a venture capital option with the main benefit being that large sums of capital can be raised. Most start up businesses can consider a small business loan, with many finding that qualification is not an easy task. Venture capital companies are able to provide different amounts based on your business needs and the industry you have chosen. Startup businesses can raise venture capital a number of times, giving them access to the amount they need, which would be impossible to raise through other mediums. When choosing venture capital, start up business owners are able to manage the risks associated with other new startup businesses. They have an experienced team backing them, overseeing their growth and operations, which reduces the risk of major problems. Start up business failure rates are twenty percent in the first year, but having an investor with experience can increase the odds of success. Another major benefit is there is no monthly repayment amounts. Venture capitalists invest in the business, doing so for an equity in the company, so there is no regular repayments you need to make, freeing up working capital and allowing for reinvestment and expansion. Another benefit worth noting is that unlike a loan, you don't have to put your personal assets up for collateral. Many startup business owners put their homes up as collateral to secure a business loan, which is very risky, taking into account that twenty percent of new businesses will fail in the first twelve months. Venture capitalist agreements do not require you do this, reducing the risk, while enabling you to take advantage of their experience and business knowledge. Venture capitalists also offer experienced leadership and advice. They know how to scale a company, solve day to day running problems, along with longer term problems. They are also experienced in monitoring financial performance. This provides valuable leadership resources. When you choose to work with a venture capitalist, you enjoy the benefit of networking opportunities to push your business forward from the start. Networking is an essential aspect to the growth of any business. When you partner with a venture capitalist, the venture capital firm may spend more than fifty percent of their time helping you build your network. Networks enable you to build new partnerships, hire key employees and raise future funding. A venture capitalist will also assist with the hiring and building of your team. The team you choose will ensure the success of your business. Potential employees often considers venture backed business, as they see it as less risky. There are a few cons that you need to look at when choosing venture capital for your start up business, which includes that your stake in the business is reduced. When you choose venture

2. capital, you reduce your equity to issue shares to your new investors. Funding is not always easy to obtain with more than one thousand proposals being submitted to venture capitalists every year. When you consider venture capitalization for your new brand, it seems a cheap option, considerably cheaper than applying for a small loan. This is not a decision that should be taken lightly. You will need to have a formal reporting structure in place, sometimes even a board of directors. This limits your flexibility within the company and reduces your control. About Us: L'ATTITUDE Ventures is a purpose led venture company that invests in early stage US Latino led and owned businesses with large and high growth opportunities. The company started in 2019, addressing the troubling economic costs to our country and the underfunding of US Latino entrepreneurs. The company invests, elevates and accelerates Latino owned businesses by investing early. L'ATTITUDE Ventures invests from $200,000 to $1.5 million in Latino led and owned technology companies that offer or provide technology as core to businesses. Full details on L'ATTITUDE the process and pitch submission form can be found on their information packed website at https://lat.vc/