Want a Venture Capitalist Onboard?

I stumbled up on a nice article By Randfish (Thanks Bostaon Bala for the twit! ) which analyzes the scenario when your family owned start up roping in a venture capitalist into their Board. He expains the pros and cons of the situation in a detailed manner. Every start up ppl shoul read it before taking a Funding Decision!.. A snippet from the article ..

Board Meetings - Rarely in small companies does leadership take a regular hard look at their priorities, strategy and direction (Will & Duncan, you're the exception, not the rule). Board meetings provide that gut-level check on every facet of the business, and let you step back to see the forest for the trees. They're not necessarily fun, but they will make you a better entrepreneur (and if they don't, it means you've likely chosen the wrong board members).

Thinking Long Term - Running a business is incredibly hard, and startups, doubly so. With so much time and energy devoted to turning the flywheel, it's easy to miss an opportunity or ignore a fundamental problem that's outside the scope of the day-to-day. Professional investment means you've got a partner watching out for precisely that issue.

Adding Experience to the Team - Every new person we add to SEOmoz, that's the biggest team I've ever led. Every dollar of revenue that comes in is the most money I've ever managed. With outside investors, they've seen and been through much bigger and can help guide you along the path - whether it's filled with potholes or littered with opportunities that just need to be scooped up.

Networking Opportunties - VCs know a lot of very important people. From strategic operators at big companies to C-level executives at startups to government, charity and press, you'll rarely find a more connected group. This shouldn't be surprising, as networking is one of the biggest value-adds VCs advertise. The problem is that for most entrepreneurs, myself included, the need for these networks is few and far between, so it seems less valuable than it really is - once your company is in a position to either do big enterprise partnerships or be acquired, those connections can "make or break" the firm.

Read the full article at http://bit.ly/PvAZX