http://vcforme.info/feed.php KubeBlog en http://vcforme.info/post.php?i=3 Mon, 06 Oct 2008 00:57:20 -0600
- Homework Homework . . . HOMEWORK ! Most Venture Capitalist firms that you come across already know what type of business or group of companies that they would like to provide financial funding for. So going to talk to a Venture Capitalist firm interested in retail and clothing when your business has to do with hospitality and tourism will probably not get any funding and also be frowned upon for the waste of time.

- Make sure your business is ALREADY INCORPORATED, most Venture Capitalist firms would prefer this be done with an attorney in that field . . . NOT store forms that can be picked up anywhere or even lawyers / friends that are attornies in off subject categories of law.

- NETWORKING. Its not what you know . . . its WHO YOU KNOW ! Try finding a company that is producing profits in a Venture Capitalist firms portfolio that can put in a "Good Word" for you.

- LESS IS MORE when proposing your business plan or idea the rule of thumb is 3 - 5 PARAGRAPHS. This is not the time to talk about your previous life experiences, but rather how what you do will appeal to the target customer and RETURN REVENUE back into the hands of the Venture Capitalist investor or investors.
Once you get the funding Venture Capitalist firms like to anticipate that ALL investments made will have liqudated within 3-7 years. For the Venture Capitalist firm to have liquidated ALL of its investments means that each company has

A) Gone public and started selling stocks and shares.
B) Be bought out by another company.

However it works out in the end of the liquidation period the Venture Capitalist firm is able to " Cash Out " and place the proceeds back into the fund if thats what they choose to do. At the end of this process is the hope to have made more than the initial investment so all the parties can split the proceeds depending on the percentage of investment made in the beginning.

A HUGE negotiating topic that eventually will come up in ALL Venture Capitalist funding situations is . . . " How much stock should I give ? " This is when a valuation of the business is needed. When a valuation is completed the Venture Capitalist firm and the people in the company come to a pre - money valuation which is when both sides agree on how much the business is worth. Once the Venture Capitalist firm gives financial backing this creates a post - money valuation. A company may give anywhere from 5% to 50% percent stocks depending on how much funding is being provided.]]> http://vcforme.info/post.php?i=3 http://vcforme.info/post.php?i=2 Sun, 05 Oct 2008 23:35:02 -0600 Venture Capital is needed for a number of things, if you are reading this then you probably have just started your business OR have plans of starting your NEW business ! Either way Venture Capital can be useful in a LARGE number of ways, some just to name a few would be :

- To aquire revenue to pay for the start up for example employees, inventory and the payment on the new building you've just started making monthly payments on.

- Obtain large sums of money to boost the growth of your new business rapidly through mass advertising and marketing campaigns.

These days you hear alot about Venture Capitalists (VCs) providing funds for startup DOT com business due to the high demand of the interent and how quickly you can get information or products to a WIDE demographic of customers, how ever this is still a small amount of what REALLY goes on in the
Entrepreneur / Venture Capitalists world.

When a Venture Capitalist firm provides a FUND for a business, this means the Venture Capitalist firm has pooled together an agreed amount of money for the business at hand. The Venture Capitalist firm will find wealthy investors that are willing to invest their money into specific groups of business, a certain niche or even companies that are preparing to do an IPO ( Initial Public Offering ) this would be called an investment profile.

  

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