You have decided to give the old boss the heave ho. Yes, you are going to start your own business. You have given it some thought and quickly realize you need money to be a success. The question is where to get it.
You need money to get rolling. Most do it by using their own savings. Alternatively, they look to traditional lending sources like banks or more risky ones such as credit cards with their high interest rates.
For those with big eyes, the idea of finding funding for an effort to take a company public is a goal. Given the right business idea, this opens up the funding source of venture capital.
What is venture capital exactly? It is money made available for investment in a company that is proposing a for profit business line that will eventually result in the company going public.
Many people are peripherally familiar with venture capitalist. They know them from the dot com era when venture capitalists were throwing money hand over foot at online start ups. Alas, that did not turn out so well in many cases.
How is venture capital actually accrued? A venture capital firm will put together a prospective fund with clear indication on the target niche of companies to be invested in. Wealthy investors then put money in.
The investments are big money deals. A fund will often collect $100 million dollars or in that range. At that point, it will stop collecting money so as not to diffuse the possible return. The company is then distributed to companies.
The venture capital firm usually has a business plan of sorts regarding how the monies from the fund will be used. The plan can be pretty much anything the venture capitalist wants so long as it is set before the investors begin putting money in.
The typical prospectus focuses on swinging for the fences, but in as smart a way as possible. This is typically done by diversifying the risk. A lot of money is invested, but into ten or so companies so a failure or two does not ruin the fund.
The prospectus will also detail a specific business niche that the fund will be spent on. Venture capitalists have a strong affection for technology companies. From Google to Intel, they seem to invest in anything technological.
What if you do not have a technology company? Are you locked out of the funding? Nope. It is just a bit more difficult to find. There are funds for everything under the sun, so stick to it. - 15246
You need money to get rolling. Most do it by using their own savings. Alternatively, they look to traditional lending sources like banks or more risky ones such as credit cards with their high interest rates.
For those with big eyes, the idea of finding funding for an effort to take a company public is a goal. Given the right business idea, this opens up the funding source of venture capital.
What is venture capital exactly? It is money made available for investment in a company that is proposing a for profit business line that will eventually result in the company going public.
Many people are peripherally familiar with venture capitalist. They know them from the dot com era when venture capitalists were throwing money hand over foot at online start ups. Alas, that did not turn out so well in many cases.
How is venture capital actually accrued? A venture capital firm will put together a prospective fund with clear indication on the target niche of companies to be invested in. Wealthy investors then put money in.
The investments are big money deals. A fund will often collect $100 million dollars or in that range. At that point, it will stop collecting money so as not to diffuse the possible return. The company is then distributed to companies.
The venture capital firm usually has a business plan of sorts regarding how the monies from the fund will be used. The plan can be pretty much anything the venture capitalist wants so long as it is set before the investors begin putting money in.
The typical prospectus focuses on swinging for the fences, but in as smart a way as possible. This is typically done by diversifying the risk. A lot of money is invested, but into ten or so companies so a failure or two does not ruin the fund.
The prospectus will also detail a specific business niche that the fund will be spent on. Venture capitalists have a strong affection for technology companies. From Google to Intel, they seem to invest in anything technological.
What if you do not have a technology company? Are you locked out of the funding? Nope. It is just a bit more difficult to find. There are funds for everything under the sun, so stick to it. - 15246
About the Author:
Find out the best companies for venture capital at VentureCapitalInvestmentFirms.com.
