Advantages and drawbacks of getting capital from investors

[Holicent]

Let's talk about the advantages of getting capital for your business from an investor:

Investors might provide large sums of money to support the expansion and growth of your company. Also, the knowledge and expertise that investors frequently bring to the table can be very beneficial to the success of your firm. The business's risk is shared by the investors. They also forfeit their investment in the event that the business fails.

Let's talk about the drawbacks:
Acquiring investors entails a certain amount of business control relinquishing. Investors frequently want a say in how the company is managed and how money is distributed. In addition, you forfeit some of your company's equity when you hire investors. This implies that you are delegating responsibility and making decisions together. Finally, Investors might put pressure on you to achieve results quickly since they have high expectations.

 

[Etini]

It is true that investors would demand that you achieve results quite early since everyone that commits financial resources into a venture is looking out for the interest that the venture would yield. But it entirely depends on how you pitched the business to investors that would determine the pressure that you would be in to achieve results for investors.

The thing with young entrepreneurs is that we exaggerate on expected results to investors and they believe that exaggeration to be true and would expect you to deliver as it was exaggerated.