When Are Grants Better For You Than Venture Capital?
VENTURE CAPITAL is available for a number of businesses that are developing products for a large markets. And grants may also be available for the same businesses. So which should you take–venture capital (VC) or a grant? To decide, remember:
Venture capital is an investment in a corporation–purchase of stock.
With venture capital you give up ownership–typically 30% to 50%.
When a lage block of ownership is given up, 50% or more, you’re an employee once again, working for the venture capitalist.
Grants do not require that you give up any ownership–you own 100% of the business to which the grant was made.
A grant may be distributed in parts–a $100,000 grant, $20,000 at a time. This can be highly motivating to you, making you to work more.
A small grant may be followed by a big grant if the work is successful and has been done as promised, on time.
Most grants are given for product development–marketing is not covered by the grant. So you must find more money for marketing.
Plenty of money is available for grants but it can be slow in being delivered to you because of required paperwork.
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