What's the word?

It's been interesting to see all of the different perspective when it comes to VC funding vs. traditional financing for entrepreneurial ventures, especially in the Phoenix metro area where the VC world is on the cusp of blooming (albeit sluggishly). Everyone (inside the VC world and out) has something to contribute to the conversation.

Some thoughts from the local VC/entrepreneurship community: 

"Raising capital amplifies the good and the bad. Founders do not have all the answers and neither do venture capitalists. Both groups operate on direct experience, observation and instincts (gut), and there are several misconceptions that can get founders into trouble when it comes to seeking funding."

 - Nate Mortenson, Principal of Tallwave Capital

"In the VC setting, value-added resources other than capital appear to be exchanged for capital, but not for one another. We find little evidence for similarity motives as the primary driver of matching, suggesting that concerns over agency conflicts in partnering are dominated by the desire to accumulate higher levels of certain resources. " [More from the report.]

- Laura Lindsey, Ph.D, ASU Professor of Entrepreneurial Finance 

"VC investors can receive tremendous publicity about their big hits with famous high-profit companies. But they expect that most of their investments will fail. Perhaps two out of 1,000 plans a VC looks at will be chosen for investment. VC investors focus on how fast the company can grow and how big it can get."

- Bob Reiss, serial entrepreneur and author of Bootstrapping 101

"Ultimately, fundraising is selling a piece/ of your company and requires persistence and practice, but for Arizona founders, there are now many options. #onwards."

- Mary Juetten, Forbes Contributor 



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