If traditional financing isn’t the best fit for your business’s needs, you may want to consider pursuing Venture Capital (VC) funding. In addition to angel investing, equity crowdfunding and other seed funding options, venture capital is attractive for new companies with limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering. In exchange for the high risk that venture capitalists assume by investing in smaller and less mature companies, venture capitalists usually get significant control over company decisions, in addition to a significant portion of the companies’ ownership (and consequently value).
The ultimate goal of working with venture capital funding is to grow your business through non-traditional financing means, to the point where it is established enough to secure more traditional financing. At that point, you may buy back the VC ownership stake for yourself, or sell raise money to buy out the VC portion through sale or public offering.
How does the process work?
If you’re curious whether Venture Capital funding is the best fit for you, simply call our office and schedule a consultation. It doesn’t cost you anything and may help to answer your questions.
If after that meeting you would like to pursue this option, you will be asked to prepare a presentation for our board of advisers. These advisers manage a multi-million dollar investment fund for capitalizing startups and business expansions of all types. Your business may be our next successful investment, so we’d love to visit with you about it.