Where To Find Venture Capital Funding?

Where To Find Venture Capital Funding?

Venture capital funding makes an outstanding source of financing when you wish to start a business or provide a boost to it. It is one of the best ways to generate large scale funding. Many companies seek venture capital funding to stimulate economic growth. While there are many companies that seek venture capital funding in a bid to access resource networks as well as establish credibility, even the veterans of this business need to play the game quite smartly if they plan to attract venture capital funding companies.

If you also want to know where to find venture capital funding then read on.

Where to Find Venture Capital Investment?

Venture capital funding companies seek capital from their partners, which they further invest in companies for a percentage ownership. It is more or less same as investment of money in the stock market. Also, you get to buy shares and hold a say in operation of the company. Investors offering venture capital funding primarily look for higher return in such investment in comparison to any other investment. Venture capital funding to a greater extent is a private transaction, which requires a certain level of regulation. Also, they are not that interested in operating a business on a daily basis. In nutshell, the investors offering a venture capital funding may not have a lot of have any experience about the industry you are running, but they are simply interested in the potential return that your firm can provide.

Now the major question that arises is where to find venture capital funding? Well, some of the options from where you can find venture capital funding are listed below:

Angel Money

Angels are basically the ones who invest their own currency in a firm to get a share in the company. The control that angel wants to have over the company often depends on the concern for the company as well as interest of the investor. Some angels may finance as well as become a part of the management; on the other hand some angels just invest and steer clear from the management. Nevertheless, if you choose an angel who has experience in the business your company is involved in, then it can be of a great value to your company.

Equity Financing

This is basically a phrase, which is used for firms that use the issuance of shares primarily of common or at times preferred stocks just to raise money.

Private Equity

If you see technically, then private equity is just an ownership stake that is bought through a private transaction. It also includes angels as well as Venture capital. Private equity stakes are usually marketed by private equity organizations. Firms have an option to sell these stakes not just to the private investors; rather they can also sell these stakes to the government, hedge funds as well as pension funds.

Corporate Venture Capital

Corporate venture capital funding refers to the subsidiary of a huge corporation that is involved in venture capital investments. Corporate venturing primarily is a done by a big company just to take a small equity position in a comparatively smaller company.

Institutional Investors

This includes insurance companies, investment companies, as well as pension funds that collect savings and supply funds in markets. Also, these organizations supply venture capital funding to institutional wealth such as foundations, endowment funds.

Investment Banks

These banks don’t invest and nor do they provide money. It is just a financial mediator, which carries out various services such as underwriting i.e. beings mediator between the issuer of security as well as the investing people. These are simply the intermediaries who are not interested in giving venture capital funding on their own.

Business Broker

Similar to investment banks, business brokers don’t fancy financing or venture capital funding or investing. They are just concerned in finding a prospective buyer for an organization. They consist of a plethora of industry associates and have a fair knowledge of the current buy structures.

So, in case you are seeking venture capital funding to catapult your business to another level then go for any of the options discussed above.

Venture Capital Funding: A Detailed Guide

Start looking for investors offering venture capitalist funding, who have investment preferences that go well with your requirements and company profile. Also, give due importance to the size of investment, geographic location, and stage of the development. Around 600 institutional venture capital funding organizations direct $35 billion capital accessible for investment. Make contacts with potential investors via respected referral like an attorney, business broker, accountant, or a consultant. Nevertheless, limit your hunt to a certain manageable investor candidates, generally six or less than that. It is best if you look for venture capital investment firms in a close proximity as it will save your time.

A proper business plan, as well as an executive summary, must be formulated by the CEO in close association with the senior management. Give ample time for fundraising to take place somewhere around six months. Also, set a budget of the maximum time for planning purposes in a bid to avoid settling with the weaknesses. Investment banks will aid the organizations raising approximately $5 million that further helps in mitigating the loopholes from the business functions. Without any outside assistance, the smaller financing can be routinely completed by the management independently. On your small financing, the accountants, business brokers as well as the lawyers act as agents and facilitate the procedure, especially for the managers new to the venture capital funding.

Take advice from the community entrepreneurs who have at once risen venture capital funding. To gain experience in venture capital investment, attend sponsored fairs, panel discussions as well as the seminars. These are the perfect platform to get exposure on venture capital funding.

Lastly, compile a list of the venture contracts as well as communicate frequently through press releases or quarterly newsletters. Constantly use written communications for developing long-lasting relationships with suitable investors through the time. Follow the aforementioned tips for successful venture capital funding. And this can help you to find the sources from where you can find venture capital investments.