The Point: “Do you really need venture capital?” is a question that we’re typically asked at Tip of the Spear Ventures, regardless of the organization is lead by entrepreneurs in a startup pursuit or an existing entity. The short answer is “No!” The long answer, well that’s a “No” too… In this post, we’ll explore the question do you really need venture capital… Enjoy!
Would you be surprised to learn that the majority of companies, successful companies, never took a dime from a venture capital firm? Companies on the Inc. 5000 in the USA, the Fast Track 100 in the UK, and similar lists everywhere didn’t follow what most would be consider the “conventional” script when it came to funding their business.
What did these organizations do then to raise capital? The huge majority of them never obtained a pound or dollar or rupee of venture funds, and they did not guarantee or mortgage their houses in the process. Rather, they were able to find ways to achieve getting their businesses up and running, then growing, without pandering to VCs or groveling to their company’s CFO.
These organizations accomplished their business funding goals by simultaneously solving pressing consumer problems, or by creating delightful customer experiences that transformed the previously mundane business that was present. Most of these entrepreneurs constructed vibrant, growing businesses without increasing treasure troves of venture capital.
“Where did their business funding come from?” you might ask. The lion’s share of these got almost all of the money–initially, at least, and sometimes for the whole journey–from a much more hospitable and agreeable source: their customers.
If you, or your organization are exploring Business Funding options, please drop us a line at firstname.lastname@example.org.