What is venture capital? Venture capital (also known as VC ) is a type of private equity capital typically provided to profitable and potentially profitable companies in the interest of generating a return through an initial public offering (IPO) of the company after a given period. Venture capital investments are generally made as cash in exchange for shares in the invested company.
When venture capital firms fund a project it is commonplace for them to place members of their team on the board and within the management of the invested company to help keep their investment secure. This is not the way to go if you want to keep your company private, limit stock purchase, or retain full managerial control. Nor is this the route to take if you need money within the next three months. However, when seeking venture capital the company seeking the investment can negotiate terms that satisfies both them and the venture firm. Venture capital is hard but not impossible to acquire so patience is required if you need this type of financial support.
A mistake people often make is they think they need venture capital when in fact they do not. There have been clients who thought due to them being turned down by their banks they should pursue venture capital as their only hope of receiving funding. All EFA did was critiqued their business plans and matched them with banks that understood their needs.
We do not discourage our clients from venture capital because this means of financing is absolutely vital for some businesses. We try to get a clear picture as to what the client want for their business/project and match them with a financing source that meets their needs. As said before venture capital is hard but not impossible to acquire so why waste clients precious time pursuing it if it is not what they need. If you think you need venture capital complete the form below and someone will be in contact with you.
* PLEASE READ* If you are seeking Venture Capital you MUST provide a Executive Summary and Business Plan (Business Proposal) when you submit the form below otherwise your information will be discarded.