Venture capital or venture or also known as a VC was originally known as developmental capital. The history goes down even before the First World War where venture capital was the monopoly of only a few rich families. But the trend is changing and the term VC has fast taken pace in the last two decades. Venture capital is a type of private equity capital and in very simplest terms can be defined as funds which are raised by private firms or wealthy businessmen in order to help small businesses and entrepreneurs.
The first and foremost barrier which new businesses face is the arrangement of capital.
This need can be resolved by contacting an accountant or a financial advisor who in turn will recommend some of the firms providing capital.
One should never trust a website or an e-mail id in such cases as they may be fraudulent or just blank.
One should always make his business plans or proposals clear. There are many business firms providing VC to specific industries such as in Q3 of 2009, $905 m alone was granted to biotechnology field which is the need of the hour. Similarly $804 m was granted to industries/ energy, $622 m to software and so on. Hence one should do extensive research about particular firms providing VC to their business interest and contact the firms appropriately.
The other basic criterion to get a VC is patience and perseverance. As there are thousands of new businesses waiting to burgeon, the firms are very selective. They may ask thousands of questions regarding the business, its feasibility, its long term viability etc. and even may reject it a hundred times. Hence one should not doubt on their talent and keep trying no matter how rude the firm is or how badly they criticize your business. One should note that even the best deals cant find VC but once, when started create magic!
An entrepreneur should also have the abilities to express his views and should know to negotiate and should be able to convince the firm that how great his product is and it can go a long way in creating waves. The basic principle is that the entrepreneur should convince the firms that their capital is in safe hands and will not be doomed.
One should always negotiate with firms in private and not online. One should make sure that their business is in right hands and that their business secrets are not revealed to fake people.
Even if one is rejected many times, there should not be any doubts about one’s dedication. One should always remember that – “never a failure, always a learning”!
