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Venture Capital Funds




Professionally managed venture capital funds usually last for 10 years and passes through 4 stages of development that include providing seed investments, start-up, management and expansion finance, and leveraged buyout financing. Continue reading Venture Capital funds
Raising Venture Capital
Raising Venture Capital towards new businesses has become a necessity driven by lack of sufficient funds to establish unquoted companies in the market. Fortunately for start-up companies today, raising Venture Capital has become easy. Venture Capital firms containing pooled investment from high-net worth individuals and Institutions are eagerly providing capital funds to high-growth potential companies. This increase in trend of Venture Capital is a result of various factors, including an abundance of economic, managerial and entrepreneurial talent, improvement of the IPO market, Government support to Venture Capital formations, creation of leading-edge technologies, etc.

Budding companies and businesses raising Venture Capital investments require a combination of the following:

A business strategy that is not only well-developed, but also promising of high returns on investment.

A business model showing possibilities for increasing growth and potential for high profitability.

A company management which involves a team experienced professionals with impressive knowledge of the market, economic trends and business planning.

Teams of management professionals capable of presenting creative business ideas that excite expansion and success.

Availability of advanced, innovative and state-of-the-art business technologies.

New companies that fulfill the above requirements are successful in raising Venture Capital for their businesses. Unfortunately, not many fall into this category and an alarming 98% of 100 investment applications are rejected by Venture Capital firms at a time.

Your Business Plan and Raising Venture Capital
If you want Venture Capital investors to pool funds in your business, you need a good business plan that covers the following essential features:

A well-planned business model for raising Venture Capital – You will need one of these if you wish to impress Venture Capitalists. No Venture Capitalist will invest in a company without a decent market strategy or set goals for expansion. You must come up with a diligently thought-out business plan, accompanied by a professional presentation for maximum effect.

A strong business strategy for raising Venture Capital - Hire a business consultant and draw a strong and structured business model based on careful market research. A business coach with good market experience will add great value to your company. Raising Venture Capital with a detailed and well designed business scheme will be easier than without.

Promising good returns on investments and keeping financial control systems in place – A Venture Capitalist will invest in your company only when your business plan promises high profits on investment. Also, financial investors require up-to-date financial data, your company’s profit/loss details, balance sheets, etc before they can invest in your business. Maintaining this data will give you an edge over your competitors, and help raising Venture Capital to meet your business needs.

A business lead generation and conversion strategy for raising Venture Capital – Your business plan should include plans for marketing of your products. Marketing plans for your business may include an Internet Marketing strategy with traffic and database building strategies and content for web marketing plans clearly defined in your business model.

Exercising good hiring decisions – Almost 40% business ventures fail due to poor management and staff. You must concentrate on your business KPI (Key Performance Indicators for All Management and Staff) when you apply for Venture Capital. Your company will function more efficiently when each department has understood and performs their assigned jobs.

Offering investors an equity share in your business – Decide if you want a passive or active Venture Capitalist in your business. An active Venture Capitalist will provide your company with expertise required for its steady growth.

Raising Venture Capital – How to attract Investors?
Raising Venture Capital for your business can be challenging if you do not have the right business strategy in place. Even so, you need the right network, corporate look and professional expertise to present your company before Venture Capital firms.

Good business networking is exceedingly beneficial for the overall improvement of your business, and especially helpful in attracting elusive Venture Capitalists and raising Venture Capital for your business. Successful business networking will help put your name in the market and create excitement towards your business ideas. Exchanging business cards is the simplest of business networking methods and also inexpensive.

Get an experienced and highly capable team of business partners to support you. Venture Capitalists favour good company structures and value loyal co-workers. Aim at building a team of experienced professionals with qualifications, credentials, innovative thinking and with defined goals for success.

Before you apply for Venture Capital, put together a corporate presentation with well-defined company goals, objectives and ideas. A sophisticated presentation will guarantee success, attract Venture Capitalists and set investment procedures a-rolling.

Get media coverage for your business. Put yourself on TV or submit write-ups in newspapers. The more visibility you can achieve for your company, better the chances of attracting investors and raising Venture Capital for your business.

 
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