Ask HN: Learning about Venture Capital
Hi HN,<p>I'm interested in pursuing a venture capital company to try to get some funding for my business idea, but I have a few questions about VC. If you have a link or some reading material that answers my questions, I'd love to read it too.<p>1. Can you ask a VC company for how much money you need, or do they offer you money based on a valuation?<p>2. How much control do they have over your business? Do they dictate salaries, compensation, bonuses, who you can hire, what tech you can use, etc? For example, say a company gets like $33 million in VC. What's to stop the CEO from making his salary $5 million a year and then just leaving after a year, regardless of the status of company. I realize most entrepreneurs wouldn't do that out of principle, but can the VC's dictate who is paid what?<p>3. Or, to counteract that, do they feed you money a month at a time or do they just cut you one big check?<p>4. What happens if you just totally fail but it was clear it was a legitimate effort? Are there any legal ramifications, or do the VC's cut their losses and each go their separate ways?<p>5. I already have an incorporated business, so I have that side covered, but the business is literally worth $0 because I haven't sold anything or have anything to sell. Say I wanted to raise $500,000 to build out the idea I have, what % of the company would the VC ask for?<p>Any other tips others have for raising capital would be extremely appreciated! Thank you!