The Anonymous Widower

Rules For Success? – External Finance

 When we created Artemis, we did it totally on our own financial resources, at least until we got going and were able to borrow what we needed commercially.

Venture capital and government funding always come with so much red tape and restrictions, that the idea gets totally strangled.

Perhaps more importantly though, is that your ideas and research may lead in a totally different direction and the external investors will probably want to keep you to the original plan.

I’ve seen both sides of external finance.  In one company we had a large external shareholding and they effectively ruined the business, by trying to take the risk out of it. At least though in this case, they bought me out at a good price.  But it might have been so much better for all of us.

In another case, I was the external financier and the other partners just carried on as though it was all their money.  They would argue it was their idea and I should be grateful to be participating.  The company went bust!

I’m not saying external finance never works and in some cases it is absolutely necessary, but if you can do without it, do so!

[Government Funding]

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March 9, 2011 - Posted by AnonW | World | Rules For Success