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  2. Some disadvantages of venture capital are12:
    • Founder ownership stake is reduced
    • Finding investors can distract founders from their business
    • Funding is relatively scarce and difficult to obtain
    • Overall cost of financing is expensive
    • Formal reporting structure and board of directors is required
    • Extensive due diligence is required
    • Business is expected to grow rapidly
    • Funds are released on a performance schedule
    • Investors may have different goals and visions than founders
    • Investors may interfere with the management and operations of the business
    Learn more:
    10 Disadvantages of Venture Capital Following are the top 10 Disadvantages of VC – Founder Ownership Is Reduced Finding Investors Is Distracting Funding Is Often Difficult To Obtain Cost Of Financing Is Expensive Formal Hierarchical Structure Is Needed Due Diligence Is Needed
    myblindbird.com/venture-capital-advantages-and-di…

    Disadvantages of Venture Capital

    • 1. Founder Ownership Stake Is Reduced ...
    • 2. Finding Investors Can Distract Founders From Their Business ...
    • 3. Funding Is Relatively Scarce and Difficult to Obtain ...
    fitsmallbusiness.com/venture-capital-advantages-a…
     
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