Pros and Cons of Venture Capital
woody1778aWhat are some of the pros and cons of venture capital investment? According to Shesh Mani, Portfolio Manager of Blackstone Group, one advantage is that VC is not a loan that has to be paid back. This gives you leverage to expand your business opportunities using other people's money. Another advantage of venture capital investment is that you can "expand your business and obtain market before someone beats you to it." Deepak Tripathi, Portfolio Manager of Sun Group cites a disadvantage: "You are no longer the sole owner of your company and may lose control." In addition, a VC may direct your company toward an IPO of publicly traded shares at a pace that may not be best for the long run.