Title: A Venture Capital Primer for small business
Author: unknown
Reference: SBA.com
Presenter: Ashley Church
Using venture capitalists to finance your small business can be a strategic method
of obtain funds.
What venture firms look for is an important consideration when you are thinking
about going down this root. The size of the venture proposal makes a huge
difference in the scope of the payoff/payback. Then there is the maturity
of the firm making the proposal which ways in on the factors at hand. You
need to be sure that you have the correct management of the proposing firm or
else there can be side affects and always be on the lookout for "something
special" in the plan, what ever it may be.
The venture proposal is much like a business plan – sometimes a business
plan and a venture proposal are one and the same. Therefore your business plan
should be carefully crafted and take into account what a venture firm wants and
does not want in a deal that is to be made. Things to consider are the
ownership of the company, the means by which the company is controlled and the
amount that it pays in annual charges.
Finally, there are many types of venture firms: Traditional partnerships
are one type. Then there re professionally managed pools. Next on
the old venture wheel comes investment banking firms, to be followed by insurance
companies. Manufacturing companies are another often used venture firm. Finally,
or last but not least, there are small business investment corporations which
are and get licensed by the Small Business Administration.
