WHAT ARE VENTURE CAPITALISTS AND WHAT CAN THEY OFFER?
Venture capitalists are wealthy individuals or firms that offer venture capital to businesses looking to grow. They’re usually entrepreneurs in their own right, and are often expected to bring their own knowledge and experience as well as their money to the business deal.
Venture capitalists can not only offer significant finance to your business, but also the knowledge and experience that they used to succeed themselves. This can be invaluable to the success of your company – capital is useless if you don’t know what to do with it or the best routes to go down.
Their money isn’t a loan, it’s a long-term investment. They invest in exchange for a share of the business, and will get their return in profits, dividends or from the ultimate sale or takeover of the business. This means that you only repay them in relation to the profitability of the business, rather than in monthly instalments that aren’t dependent upon your success.
They invest in companies that that are high-growth and that offer the potential of huge returns on their investment. Because these businesses are also high risk in their nature, the investment will typically come with a degree of ownership or control over the business. This is not only an advantage for the capitalist, but an advantage for you as well – because they’ve invested their own money they’re motivated to make the business succeed, and will spend more time an effort to help achieve this.
Obtaining funding from a venture capitalist can make your business more appealing to other investors. If someone’s invested in you before they must have had faith in your success, so securing further finance can be much easier.
Venture capitalists can provide a vital amount of funding for your business and offer the experience and knowledge that you can’t get from a traditional loan. Does this sound like the type of funding you’re after? If you want to find a venture capitalist, check out http://www.EntrepreneurInvestorNetwork.com.au, the Australian investment connection service that can introduce you to venture capitalists and business angels all looking to invest in companies just like yours.
One of the best websites in this regard is entrepreneurinvestornetwork.com.au, which aims at uniting angel investors looking for business investments in Australia with budding entrepreneurs in the country.Log on to the website today. You will not be disappointed.
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