Without an exit strategy, there is no return to investors. Venture capitalists give me a lower valuation than a private placement . Venture capitalists, especially early-stage investors, spend significant time with entrepreneurs. In contrast, private investors tend to be less involved and offer less value in the long run. Venture capitalists won't invest in small deals.
Venture capitalists are too quick to pull the plug.
That drags down the overall performance of the portfolio. Most VCs do their best to keep a company afloat. Venture capitalists don't like signing nondisclosure agreements . Good ideas often arise in more than one place. If we sign overlapping nondisclosure agreements, it can become impossible to work with a company without violating covenants with someone else.