July 26, 2010
Venture capital firms
When you want to boost up your business and you are in need of capital you start thinking where you can go to ask for funding. You probably asked for money from family and friends already and you may need more money than they could possibly raise. The other options are of course, private equity firms, venture capital firms, angels investors and debt loans.
You probably want to be able to concentrate on your business and not monthly payments you have due so the debt loan is out from the beginning. If you have to choose from the rest you will surely gain more if you chose the VCs. They are professional investors that raise money from insurance funds, private investors and other sources and invest them in businesses that can become highly profitable. The advantage of the VC funds is that in exchange for equity in your firm they will invest in it, non-returnable money and help you grow it exponentially.
More often than not, they will be experienced entrepreneurs with a lot of experience in the market they are investing in and besides money, they will contribute with advice and connections. This will sometimes be more valuable than the money.
Venture capitalists will usually want a place in your board committee and take an active part in running the company. Do not worry, they have the same purpose as you: transforming your small business into a billion dollar (or more) company.
You can find this type of funds all around the world but you should know they usually invest in firms, which are not further than 100 or 200 miles from the city they operate in. Still you have a great chance to be funded by one if you prepare a strong business plan.
Before all that, you must find the investors who are willing right now to bet their money on a company like yours. Click here to gain access to more than 4700 investment funds from all over the world. Hurry up. Your competition may already have this list.
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Expected returns And the angels and venture capitalists usually expect higher returns for their investments.
Pingback by Venture capital firms or angel investors? | Venture Capital — July 28, 2010 @ 10:32 pm
The problem with entrepreneurs is that they are afraid to lose parts of their companies if they go to venture capital funds and ask for money which is false. They will grow their company more than they ever dreamed of and make more money. Instead they make loans or ask for money from friends complicating their situation and finally keeping their business from moving forward.
Comment by Jim Langan — August 5, 2010 @ 4:10 pm
Venture capital is for bigger companies. If you have a small company there’s little chance you get capital from them. You can get money from angels if you are a really small startup. As Jim said people are afraid they lose parts of their companies, but if you don’t have enough money you can’t just give up the idea. You don’t lose anything, on the contrary, you get both money and help. If you lose, investors lose, if not, you both win.
Comment by grghill — September 13, 2010 @ 3:48 am
VCgate directory is excellent, I have tried other venture capital directories to compare information and VCgate really is the most comprehensive. I found out about your website from your Facebook Page. I live in UK, by the way.
Comment by ken grove — September 15, 2010 @ 7:54 am
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Pingback by Maximize Your Chances of Success – Select Suitable Venture Capital Firms | VC Firms — September 16, 2010 @ 2:41 am
Thank you, we are glad it was useful. All the best, VCgate team.
Comment by admin — September 22, 2010 @ 12:13 am
[…] Expected returnsBoth angels and venture capitalists generally expect a high rate of return for their investments. Stereotypically, a venture capitalist […]
Pingback by Yahoo Business » Blog Archive » Venture Capital Firms Or Angel Investors? — October 26, 2010 @ 11:32 am
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Pingback by Venture Capital Firms – How Can I Get a Job in Such a Firm? | VC Firms — November 11, 2010 @ 5:43 am