You’re reading an excerpt of The Holloway Guide to Raising Venture Capital, a book by Andy Sparks and over 55 other contributors. A current and comprehensive resource for entrepreneurs, with technical detail, practical knowledge, real-world scenarios, and pitfalls to avoid. Purchase the book to support the author and the ad-free Holloway reading experience. You get instant digital access, over 770 links and references, commentary and future updates, and a high-quality PDF download.
When it comes to starting a business, few individuals have the financial cushion to wrestle with a problem for the time it takes to understand and eventually solve it. Capital gives founders time to experiment with strategies, navigate the idea maze of business and product decisions, and learn from their failures in order to grow, eventually bringing in revenue from customers. Founders often take on immense personal risk by turning to friends, family, savings accounts, and credit cards to finance their businesses. When the time comes to grow that business, venture capital offers a path toward making a founder’s vision a reality where few other paths seem to exist.