Source Of Funding For Vcs
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Venture capitalists invest in several projects at a time and most of them invest in large projects worth a few million. Most Venture capitalists get their money from various institutional and pension fund investors.

Like other investors, Venture capitalists also go through a process of raising funds. They do this by raising funds from foundations, endowment funds and retirement funds. Venture capitalists then divest these funds into companies that they think will grow to make a profit. Most VCs try to invest in several businesses at a time to limit their risk. Venture capitalists look for big returns on their investments and are usually very selective about the projects in which they invest.

As Venture capitalists invest other people's money they are very selective about their projects. To ensure maximum returns on their funding, Venture capitalists prefer to have stock options in the company they are funding as well as a right to choose one member on the Board of Directors.

There are several different types of Venture capitalists. Some of them like to concentrate on providing seed money for a new business venture while others prefer to invest in companies that have already matured and are now in the expansion phase. Venture capitalists are also choosy about the business that they invest in. Some VCs are specific about investing only in technology companies while others don't mind investing in varied companies. Venture capitalists like to remain part of the equation in the operation of the company business. Some venture capitalists like to know about the other sources of funding for a company. In many cases, venture capitalists look at the long-term picture and if the business grows according to the plan, it may receive several rounds of funding. However, business owners need to account for all the funding during the initial talks with Venture capitalists.

Many Venture capitalists also like to become involved in the business, providing their experience and expertise in the industry. This is, in part, because venture capitalists are investing the money of other people or institutions. To obtain Venture capitalist funding business owners need to show a clear business plan with a clear vision that shows the possibility of the company making a profit.

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