Why do entrepreneurs go to VC and private investors instead of banks? Answer by David S. Rose, Managing Partner, Rose Tech Ventures; CEO, Gust, on Quora:Startups are risky, and banks are not in the risk business. Banks are in the "renting money" business. Because of that, entrepreneurs looking to finance a new venture first have to put in their own money (because no one else in the world would risk money if the entrepreneur him or herself is not prepared to risk it). The good side is that if the business fails, the investor's money goes with it, and does not have to be paid back by the entrepreneur!

Source: Forbes March 11, 2017 16:24 UTC