Receiving venture capital (VC) funding is a significant accomplishment for any entrepreneur as it takes months of hard work and negotiation. Some entrepreneurs believe that once they have secured a funding commitment from an investor, they will have carte blanche with the cash and can report back to their investors as and when it suits them.
Nothing could be further from reality. A VC will not write you a cheque for the full amount allowing you to spend it as you please.
An early-stage funder will typically fund your business in stages. This means is that you will get funding for a period of time e.g. six months, which you will need to use to achieve specific objectives for the business. VCs do this because they want to know whether you can actually execute on the plan. You’ve talked the talk, now can you walk the walk? This is why you should know what you want to achieve and how much money you need to do this, before you even talk to a potential funder. Your funder, once they have approved and agreed with the plan, will expect you to deliver on it.
To read the full, original article click on this link: VC funding is not a blank cheque with no strings attached | memeburn
