Early Stage Venture Investing
A brilliant new idea that promises to revolutionize the market, a group
of young and enthusiastic employees looking to make a mark in the world
with a passionate desire to succeed. Isn't this the perfect definition
for all new start up ventures?
These are the ideal qualities for just about any company to succeed in
today's intensely competitive world. But, there is one very important
ingredient missing, Money. Funding. How can a new company survive without
Venture capitalists or VC's have become far more stringent with their
funding rules. Most of them have a set of predefined criteria whilst
looking for startup ventures and anything that fails to meet those
criteria automatically faces rejection.
As a new company looking for funds, you have to be far more precise and
informed whilst applying for funding. The rules of the game are still the
same. But there are newer dimensions to it.
Early stage venture capitalists
As the name suggests, these are companies that specialize in early stage
venture investing. In other words, these guys invest in companies while
they are still a private co. They are also known as angel investors in
some circles. If the company is still in its infancy and does not have a
proven track record in the market, then early stage venture investing is
the best way to get funds for it. But the idea has to be good enough to
supercede the uncertainty of the venture capitalist with a desire to
invest. Not to forget one very important aspect for getting funds for
your company, the presentation.
A survey conducted in 2006 revealed that most early stage venture
capitalists did not invest in companies because they did not understand
the process completely. Now, how's that for a reason? The best way to
find quality investors is to visit early stage venture investing forums,
conferences etc. Try and gain as much knowledge as you can about the VC
before you approach him/her for funding.
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