Month: July 2017

With the economic instability, people have to find ways to come up with more viable source of income. One of these viable means include coming up with a very own company that has high potentials for growth and success. Since not all people have the financial means to do so, the most common option would be getting a startup venture capital. A startup venture capital refers to the type of private equity that is usually granted to companies and businesses that are related to biotechnology and information and communications technology (ICTs) because these are the fields that have high probabilities of generating income returns. Venture capitals are common in industries that are new and have high expectations. Before a group or a company gets this, there are so many requirements and processes they have to go through. If your company plans to avail of a startup venture capital, you should be very careful about the business that you are about to build. Starting a small business The main key to starting any business is an idea. A good idea can take you and your soon-to-be business to greater heights if you start well with your venture. Come up with an idea, product or service. Put it down on paper. You’re more likely to succeed if you plan. Put down things like name of the business, what resources you need...

Not all venture capital firms offer startup capital for your business. There are venture capital firms that are focused on a specific kind of capital, so it is pertinent to research about the capital venture firms that would cater to your needs before you even think of approaching one. Venture capital firms have specific requirements when an entrepreneur applies for their startup capital services. A great way of increasing the possibility of your business plan getting funded by a VCs is knowing their requirements and evaluating if you would fit into what they are looking for. You could narrow down your VC choices to a specific group that would display high probability of accepting your business plan. Some venture capital firms would only fund those companies or business within the proximity of their headquarters. If your target venture capital firm has geographical limitations, then you could look for VCs that does not have any particularity on location or you could look for a credible VC within your area. Aside from the location or proximity requirements, look for venture capital firms that have experience in your field. For example, if they already have an existing and former portfolio company which is in the same field as your future business. You could look in the company’s records if the VC were able to help the business. This would give you confidence...

Startup capital is the capital that an entrepreneur needs to pay the necessary items needed when starting a business, like business space, equipment, supplies, and employee’s paychecks. Meanwhile, venture capital is the fund that a venture capital (VC) firm or an angel investor would provide to a starting or trouble-laden business. Unlike loans, venture capital is invested in the business rather than being returned. With bank loans, for example, the money borrowed should be returned within a specific period of time along with interests and other fees. But with venture capital, the money is provided in exchange of equity in the business. The venture capital firm would take part in the business, they could have one of their own to be a member of the board of directors. Aside from having a portion of the company, the VC would also have the right in knowing the operation of the business. Their opinions would matter especially when making decisions in the company. VCs rarely concern themselves with the daily operation of the business unless the life of the company or business is being threatened. Aside from this, the VCs’ opinion would also matter and they could prohibit the portfolio company to close down. The difference between a venture capital firm and an angel investor is simple. An angel investor does not operate like a firm and more of a wealthy...