Topic > Advantages and Disadvantages of Fundraising - 734

Before you start raising money without a maximum limit, you should understand the risks below. More money means more due diligence If you are looking to finance your business with equity, you should understand the disadvantages. Adding a professional investor on board always comes at a cost in terms of owning your business. The more money you raise this way, the less ownership you will have in your business. Not only can this end up costing your company a lot of money in the long run, but it also adds a lot more administrative and operational burdens to the company. Since your investors are shared owners of the company, you can't make decisions without consulting them. The more investors you have on board, the more difficult and time-consuming this will be. You will also want to make sure that you use the money you have raised appropriately. Controlling a large sum of money, with a business that hasn't been operational for too long, can be a