I'm staring well a start-up :) Currently we are using internal funds, and by estimates it will last for a good while, but if our growth(users servers etc.) exceed our sales, sooner or later we will need funding or end up loosing potential customers.
I first got interested in funding options, but aren't VC or even seed money another form of a bank loan (with 10x interests). The funding parties are not in the charity business. If I got $250,000 funding then this has to come out of the company + leaving the funding party a nice compensation for giving the money in the first place (which will be written into the contract in blood probably).
It seems to me that once you get funding unless you have a product that can sell like fire there is no way out, sooner or later the funds will dry out you'll have millions of visitors but no cash-flow to sustain it yet. So the company will start looking for future letters in the alphabet Series funding.. The new funds could become an exit strategy for the previous funding parties, but this is a loop that seems to me will end in a complete buy-out.
I want to grow my company and still keep it. Am I missing something?