Venture Capital

Venture capital is the financial capital provided to businesses in their starting and early stages of the business. Nowadays there are stories of startups in the newspapers every single day. The venture capitalist puts in money if he sees high potential or feels high growth is possible. Why would a businessman put his money into other’s businesses?  They take a risk and they do deserve a good return. Venture capital investment can be done either individually, by one person or by a team of people or by companies or by venture capital funds created for this purpose.

Partnership

Venture Capitalist can join the entrepreneur as a co-promoter or just back from behind the scenes. There are a lot of meetings which take place before anything is finalized. It is important to be clear about how much involvement will be there. This is very important, as involvement should not turn into interference.  Sometimes the venture capitalist becomes the face of the company and sometimes the venture capitalist is completely invisible and pulls the strings from backstage. so whatever the conditions, they have to be clearly understood by both the parties otherwise there are chances of things going downhill are very high. Useful source

Mentoring

Venture Capitalist not only provides capital but also performs the duty of a mentor, which is important for a new company or a startup. Operational, strategic and financial advice is also offered and generally greatly appreciated because the venture capitalist is an experienced and successful person and will offer very good guide to the new entrepreneurs. For a new business to start and immediately scale up the operations is not easy and markets are full of companies, which started with a bang but ended much too soon.

Idea equals money

Venture capitalism seems like a new idea but it is actually not. Earlier also when someone wanted to start a business they went around asking for money from family and friends. It is only that now Venture capitalism has become more organized and more professional. Now if a startup or a new businessman wants capital, he also has to be professional. He has to be fully prepared with all his plans and should have done his homework and should be ready with all the answers.  So, if you have a great idea but don’t have the finance for it, don’t let it stop you. Go ahead and approach a venture capitalist and you never know what great things this partnership can lead to.

 

Comments are closed.