Bank Finance Vs Venture Capitalism

August 19th, 2007

Getting finance from your business from a financial institution is definitely a weaker option than getting venture capitalists involved. That’s because bankers by definition know nothing about business. What they know about is the flow of money. They don’t care how it’s made or how it’s lost as long as it flows. Venture capitalists, on the other hand, are at the forefront of entrepreneurship. They understand risk from an entirely different perspective from bankers. They know about the accumulation of capital, the application of it, the exponential growth of it through trade and only then the flow of it back to the financier.