Advantages of *venture capital* to finance the company
- You do not acquire debt. Venture capital money is not a loan and you will not have to pay it back. That doesn't mean it's free. You will pay for it with shares in the company.
- You improve your network of contacts. In the first rounds of funding, the company will receive the money from investors and will usually also benefit from its network of professional contacts.
- Vote of confidence. Raising finance is never easy. When a form of Venture Capital agrees to invest in a company in a Series A round, it implies that it sees high growth potential. It is a vote of confidence that can encourage other investors.