|Small Business Information|
Finding a Venture Capital Firm
Many ventures are faced with the challenging task of raising venture capital. The first part of this process is finding the right venture capital firm (VC). While this may seem simple, it isn't. There are thousands of venture capital firms in the United States alone, and going after the wrong ones is one of the most common reasons why companies fail to raise the capital they need.
When seeking a venture capital firm, there are six key variables to consider: location, sector preference, stage preference, partners, portfolio and assets.
Location: most venture capital firms only invest within 100 miles of their office(s). By investing close to home, the firms are able to more actively get involved with and add value to their portfolio companies.
Sector preference: many venture capital firms focus on specific sectors such as healthcare, information technology (IT), wireless technologies, etc. In most cases, even if you have a great company, if you fall outside of the VC's sector preference, they'll pass on the opportunity.
Stage preference: VCs tend to focus on different stages of ventures. For instance, some VCs prefer early stage ventures where the risk is great, but so are the potential returns. Conversely, some VCs focus on providing capital to firms to bridge capital gaps before they go public.
Partners: Venture capital firms are comprised of individual partners. These partners make investment decisions and typically take a seat on each portfolio company's Board. Partners tend to invest in what they know, so finding a partner that has past work experience in your industry is very helpful. This relevant experience allows them to more fully understand your venture's value proposition and gives them confidence that they can add value, thus encouraging them to invest.
Portfolio: Just as you should seek venture capital firms whose partners have experience in your industry, the ideal venture capital firm has portfolio companies in your field as well. Portfolio company management, since they are industry experts, often advises VCs as to whether the company in question is worthwhile. In addition, if your venture has potential synergies with a portfolio company, this significantly enhances the VCs interest in your firm.
Assets: Most companies seeking venture capital for the first time will require subsequent rounds of capital. As such, it is helpful if the VC has "deep pockets," that is, enough cash to participate in follow-on rounds. This will save the company significant time and effort in maintaining an adequate cash balance.
Finding the right venture capital firm is absolutely critical to companies seeking venture capital. Success results in the capital required and significant assistance in growing your venture. Conversely, failing to find the right firm often results in raising no capital at all and being unable to grow the venture.
As President of Growthink Business Plans, Dave Lavinsky has helped the company become one of the premier business plan development firms. Since its inception, Growthink has developed over 200 business plans. Growthink clients have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share.
The Game Plan ? The Difference Between Small Business Success And Failure
It is an American dream to own a business. But sadly, according to the U.S. Department of Commerce, only 1 in 5 businesses is still in business 5 years after it opens.
Mattress Cleaning Business: How To Manual
A Mattress Cleaning Business might be just for you if you have tried everything to contain your allergies, but feel like it is not enough. Instead of just purchasing the equipment to rid your fabric furniture and mattresses of allergens, you can also help others in your community to feel the relief and make a good income at the same time.
Finding the Right People for your Business
Where do you find the right people for a business relationship?
But Weve Always Done It This Way
Sacred cows take a long time to die. We get comfortable in the way we do things and lose sight of how they could be improved. Here's an interesting story.
What are the COSTS Associated with joining Leads Groups?
When it comes to cost, how much can you afford or not afford?
The Key To Success - Choose The Right Partners
Do you promote yourself as offering prompt, reliable and quality service?
Where to Find a Cash Windfall of $10,000 to $1,000,000 -- You Never Knew You Had
There is a rather famous true story called "Acres of Diamonds".
Finance Your Small Business: So Much Money, So Little Time
$37.4 million funded from venture capital today. $86.4 million funded yesterday. $51.4 million funded the day before.
Low Cost or Highly Funded Start Up
Many new ventures are preoccupied with all the money they are going to make, rather than how they are going to the about making it. Set realistic goals by setting realistic steps-discreet 'doable' actions, each of which connects to the next one in some logical progression.
Secrets Revealed To Having The Most Professional Staff On The Telephone!
Do you have all the customers your business can use?
Forming a Corporation ? Investors
You've come up with the best idea since sliced bread, figured out a business name and formed a corporation. There is, however, one small problem. You need money. Welcome to the world of investing.
How to Start a Pet Transportation Business
Pet Transportation Services are needed as the number of pets in the U.S. has grown tremendously over the past few decades. According to the U.S. Pet ownership and Demographics sourcebook, there are an estimated 60 million dogs and 70 million cats in American homes today. Apart from that, households which own pets have been recorded to spend 36% more in 2001 as compared to 1996. With this, owning a business that caters to the pet market, including a pet transportation service has lots of potential for healthy growth.
Business Relationships Defined
What makes a business relationship?
A Look at Incorporating a Business in Florida
As you may know, there are many ways to incorporate a business in Florida. While companies exist to do the legwork and paperwork for you, the most direct way is to contact the Florida Department of State, Division of Corporation's website itself.
Packing Material Thats Cheap!
Shipping materials can be expensive! Even the styrofoam "peanuts" can cost a great deal. Here's a great idea for packing paterial that is bio-digradable, easy, and best of all...CHEAP!
9 Things You Must Do To Maximize Your Chances Of Obtaining A Small Business Loan
To get approval for your small business loan application, you must be able to meet the lending criteria set down. Some organisations are more risk averse than others, and will therefore have more stringent criteria. To vastly increase your chances of a successful funding application, you will need to present the following information:
Collaborative Negotiating: A Win-Win Strategy
The Workers? Compensation Situation in this Country is Nuts, Arnold in CA Takes Action
The Workers' Compensation situation in this country is unbelievable. Why, well because of lawsuits and attorneys mostly. The costs of workmen's compensation on the business community is part of the reason for the slow return of high paying blue collar jobs in this country and the demise of the manufacturing sector. The system covers some 122 million workers nationally, but it is regulated state by state, not nationally and there is nothing close to being a Federal Oversight on this, not that I or anyone else cares to add another layer of bureaucracy to an already broken system.
Deciding Which State To Incorporate Your Small Business In
Once you've decided to incorporate your small business the next step is deciding which state to incorporate in. A common misconception is that businesses must incorporate in their state of operation. You can, in fact, incorporate in any one of the 50 states and the District of Columbia regardless of where your business currently operates.
The Business Failed, But Did You?
Q: After years of dreaming about starting my own business, I finally took the plunge a little over a year ago. To say the least, my dream quickly became a nightmare. The business didn't do nearly as well as I had hoped. I ran out of money within six months and had to take out a second mortgage on my house just to keep things going. I have now closed the business and am left with a pile of bills that will probably put me in personal bankruptcy. I don't mean to take it out on you, but instead of telling people how great having your own business is all the time you should also warn them that starting a business is not easy and can be devastating when things go wrong. -- Gene K.
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