Friday 25 April 2014

Capital Introduction


What do all entrepreneurs have in common, whether they are only starting up or are already in a growth stage? They are always complaining about the lack of capital needed to advance their company further. Furthermore, one of the only ways to obtain this capital is by raising venture capital, which can be a trying and difficult process.
Despite the fact that venture capital funding fell during the 2008-2009 fiscal year, venture funding also picked up along with mergers and acquisitions. There is no question that there have been some tough times for both entrepreneurs and venture capitalists alike. There are signs that the VC funding will be back at the norm at the end of 2010. There is no question that in most cases, when entrepreneurs are looking to raise capital from angel investors or venture capitalists, the odds are almost always against the entrepreneur.
In most cases, the entrepreneur ends up dealing with conservatives who invest in start-ups, which involves a rather high risk to the investor. In any case, for an entrepreneur to have any chance in raising venture capital he has to do quite a bit of work and research to make sure that everything is right and that the investor agrees with his research. The most important thing to look at here is that you need to make wise decisions in your business plan and all your research when going to propose your company to an investor.
As far as different industries are concerned, venture capital firms usually invest in the industries and sectors that their partners have experience in. In most cases this primarily depends on the firm itself and the expertise of the partners in that firm.

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