Venture Capital: Make it Optional, Not Mandatory

Venture capital can serve as a vital resource for some companies, enabling their existence and growth. However, it is wise for entrepreneurs to structure their businesses in a way that does not depend entirely on venture capital. The current trend is moving towards setting up businesses where venture capital is optional, not required. Often, venture investors aim to mark up their portfolio value by encouraging founders to raise higher valuations in subsequent rounds. This strategy focuses on incentivizing founders to raise more funds, which benefits the investors in terms of fees and portfolio growth. Despite the traditional approach, some organizations, like Slow and Lessons Fund, are innovatively exploring new models, such as investing in top creators to foster unique opportunities.