What are the advantages and disadvantages of seeking financial start up from a

venture capitalist?

Advantages: The primary advantage of venture capital financing is an ability for company expansion that would not be possible through bank loans or other methods. This is essential for start-ups with limited operating histories and high upfront costs.

There are many advantages and disadvantages to pursuing venture capital investment. The disadvantages are such that, if possible, most entrepreneurs prefer to grow organically. That is, they prefer to grow with personal investment, outside debt, and company revenue.