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You have many tools to scale your startup - venture capital is one of them. However, there is quite some media attention given to startups raising VC funds. This results in external funding receiving more importance than it deserves. So, understanding its nuances, helps you see it for what it is, rather than putting it on a pedestal.
It is good to know about the functioning of VCs irrespective of your startup's stage (even before thinking of an idea).
The same holds for considering a fundraise. Additionally, in this case, you need to be convinced that this is the best tool for your startup's growth.
Post fundraising, it has many benefits - money to hire talent, easy PR and access to a wider network. However, VCs expect a disproportionate return (typically, 100x+) in a fixed amount of time. Your metrics of growth might also be VC-focused rather than customer-focused.
Here we discuss, not the steps to raise funds for your startup, but the process VCs follow while investing in startups. This will help you understand whether your startup aligns with VC investment or not.
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