Don't Play with Other People's Money

The key problem with venture capital remains simple: You're playing with other people's money. David Heinemeier Hansson, partner at 37signals, believes that using venture capital removes the accountability that's inherent when an entrepreneurs use their own money. When it's your own money, he continues, you want to make more of it faster, so you don't just put out a product without a price. The urgency you get from spending and making your own money is the most powerful driving force for an entrepreneur.