Pros and Cons of Venture Capital

It is a good source of capital for startups with huge growth potential, especially technology driven ones. They also provide management assistance , strategic advice and active involvement in addition.

The important disadvantages are complex process, loss of effective control, very high cost in the long run, charges irrespective of the success of the deal and will always be concerned about proper exit than long term growth of the company

I am sure you know that ICICI Venture offloaded 8-10% of their holdings to Azim Premji investments in the Subhiksha trading of Chennai.I am sure that ICICI venture were sitting in all board meetings of the company and had the information that the company was cash strapped.

In order to hang onto as much of your company as possible, "bootstrap," that is, raise funds from your own assets, and from family and friends. Warning: don't raise money with credit cards; the interest is exorbitant and will quickly destroy you and your business. The best time to seek outside investment is after you have already developed a viable business that now needs capital to grow marketshare or build inventory. Most traditional VCs won't touch a company that hasn't been around for at least two years.