Mark Loschiavo, executive director of LeBow College’s Baiada Center for Entrepreneurship, commented on a story about the television program “Shark Tank,” in which entrepreneurs vie for start-up capital from investors.
Be realistic, Loschiavo, says. “Venture capitalists or private-equity folks are always going to view the value of a business significantly lower than an entrepreneur believes it is worth. There’s always a chasm between what the entrepreneur wants and what the venture capitalists are willing to offer in terms of equity and investment.”
“Venture capitalists can be excellent sources of feedback, whether they invest in your product or not,” Loschiavo says. “You can really learn a great deal about how to improve your plan or product, because these folks are going to pick up on any possible pitfalls.”