You can raise VC without giving up majority control.
In two ways.
First, don't allow dilution to push you + any co-founders below majority. If you focus on building a profitable business, and you're not trying to be the next Uber, this is extremely doable. Ellison at Oracle, Gates + Allen at Microsoft, and Omidyar + Skoll at eBay were able to basically do this; Bezos & Family were also roughly able to accomplish this leading up to Amazon going public (his family still owns nearly 20%).
Second, use the Page-Brin voting shares control approach. Most investors will not like this, don't take their money. Find investors that sync with your vision for the company.
I took on a well known investor, and gave up a modest corner of my business. I retain majority, and will continue to indefinitely. The key is to be able to grow your business into the second or third inning with that first investment, then strictly control dilution thereafter. For example I could do two rounds of 15% dilution from here, and the investors would still not have majority control.
If your business needs to bleed large amounts of red ink, then you're going to put yourself into a corner accordingly. There probably is no good outcome unless you happen to be among the tiny number of companies that make it out of that start alive. For everyone else, you always have a choice.
In two ways.
First, don't allow dilution to push you + any co-founders below majority. If you focus on building a profitable business, and you're not trying to be the next Uber, this is extremely doable. Ellison at Oracle, Gates + Allen at Microsoft, and Omidyar + Skoll at eBay were able to basically do this; Bezos & Family were also roughly able to accomplish this leading up to Amazon going public (his family still owns nearly 20%).
Second, use the Page-Brin voting shares control approach. Most investors will not like this, don't take their money. Find investors that sync with your vision for the company.
I took on a well known investor, and gave up a modest corner of my business. I retain majority, and will continue to indefinitely. The key is to be able to grow your business into the second or third inning with that first investment, then strictly control dilution thereafter. For example I could do two rounds of 15% dilution from here, and the investors would still not have majority control.
If your business needs to bleed large amounts of red ink, then you're going to put yourself into a corner accordingly. There probably is no good outcome unless you happen to be among the tiny number of companies that make it out of that start alive. For everyone else, you always have a choice.