Why Early-Stage Founders Should Be Wary Of Big VC Checks

Global VC investment is exploding. In the first half of 2021, capital increased by at least $288 billion compared to the previous year. Checks are getting bigger, founders are closing deals faster, and VCs are scrambling over one another to secure the top startup picks.

But before founders get caught up in the rush and succumb to the charm of deep-pocketed VCs, they need to consider what their early-stage business really needs to thrive long-term. Capital alone isn’t sufficient. Young startups need the added value of an investors’ expertise, connections, mentorship, and time. Accepting hefty investments that emphasize rapid growth can expose a startup to the risk of an early flop, as its foundations aren’t yet strong enough to sustain the pressure. READ MORE