What is Venture Capital and from Where is This Business Funding Available
Article by Zeno Soft3
Venture capital, sometimes referred to as business funding is available from many sources; however there are different types of inward investment to a fledgling start up business or a business which needs a capital injection with which to expand and move on to the next level. Inward investment from venture capitalists is invariably required at the early stage of high risk high growth startup companies.On the other hand, established businesses which are ready to expand or diversify at the next level and capital funding in the amount required is not available from the usual suspects (the banks), are able to approach consortiums or individuals known as ?angel investors? and are usually sourced by way of introduction by a business plan consultant. Angel investor individuals or networks of individuals all of whom are of high worth and affluent, are available for injecting funding into high risk high potential businesses.Unlike venture capitalist funds which are managed by a fund manager and are backed by other lending institutions and/or private investors, an angel investor will be using his or her own money, and like a venture capital fund will require a stake in the business and be seeking a financial return for their investment. Angels tend to fill the gap in funding which perhaps family members or friends are unable or unwilling to bridge, or indeed the gap in funding which many short sighted loan officers in banks and lending institutions are not prepared to fill. This could be because of strict lending protocols in place to protect the banks? investors? money, or indeed it could be because a bank is known only to loan money or offer a loan facility when it is not required, therefore being a safe bet. It matters little if a business owner or entrepreneur has a sound business plan which has evolved with the business, it sometimes can be extremely frustrating dealing with regular lending institutions.In the main angel investments bear a higher than normal risk and as such investors tend to require a higher return on investment than injections of capital from regular investment sources. However the rate of return is usually up for negotiation at the initial contract stage dependent on the assessed risk factor and the industry in which the business operates.Funded.com is a facilitator of venture capital and angel investors, a network of business consultant individuals who have connections with high worth individuals for high risk start up ventures. Contact them today at the website, the address of which is http://www.funded.com
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Funded.com is a facilitator of venture capitaland angel investors, a network of business consultant individuals who have connections with high worth individuals for high risk start up ventures. Contact them today at the website, the address of which is http://www.funded.com
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