Why Venture Capital and Private Investments Still Play a Role in Startup Financing

You remember those vinyl records? I do. Man, they represent a time long gone but with nostalgia making us long for the days when listening to music was as much an art form as the music itself. Let’s segue from that, shall we? What about venture capital and private investments? Is there nostalgia with that as much as vinyl? No, probably not.

But Venture Capital and Private Investments for Sure Still Are Effective!

Forget your Beatles record and let’s see if we can get your startup business launched with kickstarter recordeffectiveness, right? Maybe then you can celebrate with some scratchy record playing on the turntable, but until then, this is about getting those startup expenses taken care of; and in particular, with this day and age being all about the Internet, social media and word-of-mouth advertising, you begin to wonder: do the traditional methods still work? Yes, in a way.

Crowdfunding campaigns and other word-of-mouth fundraising opportunities like Kickstarter¬†certainly have been sitting in a spotlight for numerous startup miracles out there; but without a doubt, there’s still a place for venture capital and private investments to help bolster the results and make it that much more long-term. For one thing, as effective as crowdfunding is these days, more often than not startup businesses won’t be able to cover¬†all of their costs without a little help from venture capital and private investments. Granted, crowdfunding can take care of a great portion of it — but not all of it. After all, there are situations like the Steelcase Pyramid over in Gaines Township where you have a load of expenses involved!

That being said, crowdfunding often can be considered a catapult for the longer-term generator that is venture capital and private investments. Others went ahead with some opportunities to seek venture capital and private investments first before even considering crowdfunding, because even the opposite applies in this case as well.

Basic Summary: Incorporate Both Into Your Funding Strategy

One or the other probably won’t cancel each other out; that’s for sure. Just like there will always be someone out there with their vinyl records, remembering the golden ages of music. So why not just use both? Startup costs can be expensive. Ensure you have everything covered.