How to Create the Next Facebook: Seeing Your Startup Through, from Idea to IPO

Raising Capital

The lack of money is the root of all evil.

—Mark Twain

In a market where speed is critical, outside funding allows young companies to move faster than they otherwise could if they had to rely only on their own revenues to fund product development. Sure, receiving outside funding means you’ll have to give up some of your company’s equity, but over time, the early sting you might feel when sacrificing a percentage of your shares to get your company up off the ground and running will diminish. If you create a valuable company, the initial dilution of your shares is worth it in the end. Even wealthy entrepreneurs often raise capital. ...