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companies, so you better have alternative sources of revenue, debt or other ways of selling equity once you are public because you won't get it from them. Fourth, they expect a high rate of return, usually 3X, 5X, 10X or more. So if you are looking for $25 million to start your enterprise, you do the math. That payback comes from your equity and the value of the equity in the market. VC's bail out usually within a fixed limited time line, 5-7 years from funding, provided the VC fund isn't in trouble. They will look to sell, merge, consolidate or parlay your company, technology and employees to maximize their return and lower their risk. All the actions taken by VC's and that are clearly spelled out in their documents of control, actually lowers their risk but increases your company's risk to failure.

Alternative sources of capital include, if you are a science based company, the Federal Government programs. This always requires you have a lead 'Principal Investigator' or 'PI' on your team that is somewhat recognized, writes good grants and has some experience at presenting novel ideas in an exciting way to the independent review boards at most Federal agencies. Other sources include the friends and family money, the Small Business Administration or SBA and your local banks, associations and entrepreneurial support groups (you should have one in your area).

Also, there is the public market. There are many ways to start a company via the public markets without VC support and backing but it is tough. There are reverse merger shells into the bulletin board, unregistered securities boards like the Pink Sheets and the newly formed QX exchange and also there are foreign exchanges such as the NYSE-Euronext, AIM, Alternext, Frankfurt Exchange and many others. Get yourself a good securities lawyer who has experience in the public markets and the Securities Exchange Commission and also get yourself a good accounting firm that has done public filings and understands that SOX doesn't mean the Red Sox or the White Sox.

Prior to a public market entry, many entrepreneurs opt for the private equity' market and there are many angel venture capital' firms that can help assist in this process. Again, the word angel' is not what I would call the VC's but just be aware that this is a good source of capital as long as you understand their ability to take over your company.

No matter which way you go, your path will be unique and personal. You may be required to mortgage all of your

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