Venture Capitalsts are Looking for You!
Let me tell you why it is important to attract venture capital to your online business.
As you can see, it is possible to succeed without it – but it is far easier to grow your business with it.
What is venture capital?
It is a type of financing provided by investors to startups and small businesses with assumed growth potential – in the long-term.
Venture capital usually comes from wealthy private investors or investment banks.
It does not always take a monetary form.
It can also be offered as technical or managerial expertise.
Typically it is allocated to small companies with exceptional growth potential.
Alternatively, it is provided to those that have grown quickly and seem to be ready to continue to expand.
So, your task is clear: become an attractive startup superstar!
Why do venture capitalists take the risk?
Well, those who put up funds are aiming at the potential for above-average returns.
That is their attractive payoff.
For new companies or ventures that have a limited operating history (less than two years), venture capital funding is increasingly becoming popular.
In some cases, it is even essential for raising capital.
When small companies lack access to capital, bank loans, or other debt instruments, venture capital is a good solution.
The main downside is that the investors usually get equity in the company…
So, they have a say in your business decisions.
If you are ready to analyze the pros and cons, do it.
If the outcome is that you are willing to involve venture capital, do it quickly.
There is one more phenomenon you should hear about early on.
That is business angels.
They are high net worth individuals (HNWI’s) – also known as angel investors.
They are typically a diverse group of individuals who have amassed their wealth through a variety of sources.
They tend to be entrepreneurs themselves, or executives recently retired from the business empires they've built.
More about them in another post.
Have you some experience with venture capitals?
Share it with us!