Raising Capital

When Raising Capital For Your Business, Bigger Checks Are Not Always Better

For lots of smaller businesses, bootstrapping and micro-VC might be a better option.
Guest Writer
President and CEO of Kauffman Fellows
2 min read
Opinions expressed by Entrepreneur contributors are their own.

Many entrepreneurs are unclear about the right path to take when raising money for their new business idea, and due to the attention given to venture capital-fueled success stories in the news, many ambitious entrepreneurs set their sights on becoming the next Evan Spiegel (or Snap) without enough thought about what is the right path for them. .

And when it comes to capitalizing your business, venture capital is often not the best route to take.

Venture capital can be great for the company that is looking to build the next rocketship of growth -- think of companies like Snap or Lyft. But for lots of smaller businesses, bootstrapping and micro-VC might be a better option.

Related: No Money to Start a Business? No Problem. Try These 5 Options.

The cost of starting a company is pretty low -- often less than a million dollars. So the initial investment from an angel should take you a long way to building traction.

Kauffman Fellow Samir Kaji sees this all the time in his role as a senior managing director at First Republic Bank. He is also an expert on micro-VCs. Click play to hear his advice for founders thinking about their options.

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