A venture capital firm enters a relationship with a company with the expectation that a significant return of investment will result when the firm exits the investment. The firm plans for that exit to take place within a certain amount of time, usually from three to six years, depending on the development stage of the [...]
Venture capitalists are looking for significant returns on their investment. A company needs to be able to demonstrate significant growth potential in a large market to be attractive to a venture capitalist. This type of growth has most recently come from significant innovations in technology. Industries such as biotechnology and health care typically attract venture investments for [...]
Before approaching a venture capital firm, you should have a clear understanding of what you want to achieve. You are obviously looking for money to help expand and grow your business, but what other resources does your business need to take the next step? Do you need practical guidance from seasoned executives that have a [...]
I’m targeting angel investors for my company’s first round of funding. Are there certain things about a start-up company that makes an angel want to invest in it?
Does it make sense to get angels to invest in my business? I don’t plan to do an IPO or selling. So how do I provide for liquidity or return for the angels without these mechanisms?