{"id":12386,"date":"2015-04-02T14:39:33","date_gmt":"2015-04-02T18:39:33","guid":{"rendered":"https:\/\/www.wework.com\/creator\/?p=12300"},"modified":"2020-04-03T15:56:20","modified_gmt":"2020-04-03T19:56:20","slug":"how-to-fund-your-business-venture-3-creators-tell-all","status":"publish","type":"post","link":"https:\/\/www.wework.com\/ideas\/professional-development\/how-to-fund-your-business-venture-3-creators-tell-all","title":{"rendered":"How to fund your business venture: Three creators tell all"},"content":{"rendered":"

It\u2019s an unwavering reality\u2014entrepreneurs need money. The best laid business plan won\u2019t ever come to fruition without financial backing behind it. So today we\u2019re talking dollars and cents.<\/em><\/p>\n

There are myriad ways to fund your business and every entrepreneur\u2019s journey is different. Through the experiences of three entrepreneurs, we\u2019ll look at the main types of startup funding\u2014venture capital, angel investment, and self-funding. Career Contessa<\/a> discusses what worked for them, how they got the funds they needed, and how these savvy entrepreneurs manage their business finances for future growth.<\/em><\/p>\n

Venture Capital
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Venture capital<\/a><\/span> (VC) is a type of equity financing for businesses that don\u2019t seek financial investment from traditional sources, such as banks or public markets. Venture capital tends to be allotted to young, high-growth companies, with investments made in exchange for shares and an active role in the company.<\/p>\n

Darby Smart<\/a><\/span>, an online marketplace of do-it-yourself projects, was founded in 2013 by Nicole Shariat-Farb<\/span><\/a>. The site originally launched with 10 designers; today, Darby Smart\u2019s designers number in the thousands. Given the company\u2019s fast-paced growth, Nicole pursued VC funding. She raised $6.3 million in VC funding in the first round.<\/p>\n

For investors, venture capital is seen as a high-risk investment with potentially high rewards. VC investors want to see a strong foundation, a great team, a viable business model, and a data-driven approach to growing a business. For Nicole, that meant a deep understanding of the $300 billion craft market, a co-founder who was an engineer and could help achieve her vision, and a disruptive business model that changed the way the craft industry performed.<\/p>\n

For investors, venture capital is seen as a high-risk investment with potentially high rewards. VC investors want to see a strong foundation, a great team, a viable business model, and a data-driven approach to growing a business.<\/p><\/blockquote>\n

With VC money, you have access to advisors, funds, and, of course, capital that can take your company to higher levels of growth more quickly. But these are active investments\u2014investors usually want to be a board member or have a strong say in the company. While this can be extremely beneficial, it can also cause conflict if there are differing opinions. And, at the end of the day, you give up a portion of creative control over your company.<\/p>\n

Getting outside funding for your business venture is tough. You not only have to create a viable business model, but you have to prove that it\u2019s viable to outside investors. These are Nicole\u2019s top tips for female business owners pursuing VC funding:<\/p>\n

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