Who needs investors?

These days, people starting new ventures, whether inside large companies or in their garages, whether lean start-ups or otherwise, often assume that the first thing they must do is raise some seed capital to fund their start-up. A great idea plus some angel or venture capital and, voilà, we (and our investors) will soon be rich! Or so they believe. But that’s not how things used to be, before venture capital investors captured the entrepreneurial financing limelight two generations ago. So, just maybe, is today’s ‘idea plus venture capital equals instant riches’ notion misguided, or even fundamentally wrong? Is there a better source of seed capital for your new venture? Let’s consider some examples, then and now, and ...

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