Woodrow “Woody” Wollesen, president of Execunet and Operation Veteran Empowerment, wrote the “The Ultimate Financing Guide” to help vetrepreneurs navigate the multitude of options.
“I’ve always told my clients that financing options should be viewed as tools,” Wollesen said. “Knowing when and where that tool might fit becomes the challenge.”
Pros and Cons
Wollesen said angel investors are generally less risk-averse than banks, for instance. In some cases, venture capital investors may offer a solution for funding that may not be available to all vetrepreneurs. There are drawbacks, however.
“Whether equity capital is truly the ‘cheapest path’ may be open to some debate,” Wollesen noted. “When you have one or more equity partners, you have ‘crawled into bed,’ so to speak, with others. The advice that one should carefully measure all aspects of one’s available options never had a more profound meaning. Choosing wisely is one heck of a lot more than a casual admonition”