Tag : Venture Capital pool

What It Takes to Attract Venture Capital
07 Mar

What It Takes to Attract Venture Capital

There is usually a certain time when an entrepreneur begins to wonder what it takes to attract venture capital. This is when they have reached the end of the financing line. Yet, there are some reasons why they might consider it first and not last.

When a person is starting to wonder what it takes to attract venture capital, they have usually exhausted the normal means of financing. The reason that venture capital has grown in this country some rapidly in the last 50 years has to do with the revolution in technology and the trend toward globalization. We know we need to stay on the cutting edge just to keep up with the rest of the world. Things are moving faster today.

The time when we throw people in prison for insisting the world is not flat is long gone. Today, we need to find them the financing to build a ship and go find out. We can not afford not to encourage technology. So, this is what it takes to attract venture capital; it takes an idea on the cutting edge. Why do you need venture capital when you have the idea for the better mousetrap? Well, because the banks are busy lending money to companies building the old ones. They are proven. They are safe. They won’t make a lot of profit, maybe, but they will make enough to repay the loans.

So, the banks are not …

Understanding Venture Capital Pools
21 Feb

Understanding Venture Capital Pools

A Venture Capital pool is the total pooled money that the investors bring in to finance various companies or projects of their choice. This money is put to use in various industries and it facilitates development. These pools have plenty of risks with which they operate and that is because they venture into territories with uncertain outcomes in anticipation of a huge profit this explains why they may be interested in getting involved with the decision making and ownership of the company in exchange for the capital.

If you consider yourself a budding entrepreneur and are considering VC as an option for juicing in funds for your business it would be wise enough for you to keep in mind that a large portion of your business will have to be handed over to the VC. It is not only elusive due to the fact that very few business ideas can make it up so high that they can receive funding but it also becomes very clear, to whomsoever concerned that your business plan is very bright and will definitely succeed.see some advice at this website source.

The whole game here is to find the right balance between the extent to which capital is infused in and how big a stake of ownership you are willing to give away in exchange. The VCs at a time expect a humungous return of over 30% to 50%, which explains why they …