6/4/2010

Venture capital funding is reserved for the top tier of high-growth startups that show the most potential for success. Investors typically seek some measure of control over the company, such as taking a board seat or controlling day-to-day operations, so venture capital may not be right for every startup. "Entrepreneurs need to fully understand the expectations of a venture capitalist," said Kelly Roth, who left her company a year after her partners voted to take venture capital funds. "It is not a short-term fix but a long-term obligation." But the money can ensure the continued survival of a company and allow owners to focus on expanding the business.

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