Venture capitalists refer to an individual who is interested in investing in a business enterprise, providing capital for start-up or expansion. He can also be called a professional investor who manages the investments funds as well as finding suitable investments for that fund. In most cases venture capitalists are set to seek for about 25% returns or above depending on how the enterprise will fair our or flourish.
However, the venture capitalist may be having no applicable business experience to the enterprise your company is dealing with, but he or she is focused on the potential rates of returns your business can offer. Suzan Ward (2012). On the other hand a business venture is a beginner enterprise that is made with the expectation and a strategy aimed at gaining financial returns. By the way a business venture is born out of a need for something missing in the current market. This need can be in form of a product or a service that the potential buyers are demanding for or need to serve a specific purpose. Tess C. Taylor (2012).
There are various types of venture capitals that are tremendously important in the framework of the modern day business enterprise. These types of venture capital are categorized as per the aim and time of their request. However the three major types of venture capitals are initial or early stage financing, expansion finances and buyout or acquisition financing. The suitable venture capital company to be looked for is the one that has the capability to execute all those types of venture capital for the investment at every stage of the growing enterprise. This type of company will ensure that the business will not stop at any given time since all the requirements will be met at every time of request.
First and foremost are the capital assets purchases account segmented into the requirements and finally given its totals. The second place should be taken by the star-up assets such as; cash required, start-up inventory, other current assets and long-time assets plus all its totals. Then start up expenditure will be structured to handle requirements such as insurance, employee earnings furniture supplies among other not mentioned.
The deal will be taken to a legal adviser or a commissioner of oaths to seal an agreement of the deal. The presentation will include an executive summary including the objectives, mission, vision and the key to success. Tools to be used to interest the audience to be invested are computerized slides of the enterprise strategy pre-view as well as expected returns and investors returns share. There will be follow up measures to be taken such as continuous investor’s reminder of the project.
Finance maps of world: Types of venture capital Retrieved On July 2, 2012 http://finance.mapsofworld.com/equity/types-of-venture-capital.html
Suzan Ward (2012). About.com guide on Venture Capitalist Retrieved On July 2, 2012
Tess C. Taylor (2012). Wise Geek “What is business venture” Retrieved on July 2, 2012