Financial Help - Venture Capital
selling your soul
Venture capital is money provided by others who specialize in funding new ventures. Considering the size of the investment and the risk involved, you can be certain that they will want more interest than a typical bank loan. What's more, they want plenty of evidence that you are really on to something. Detailed business plans and market studies are a must.
Virtually no one loans money to an inexperienced entrepreneur with an untested idea. You need a product with respectable sales figures to get the attention of venture capitalists. They are usually looking for businesses that needs help to grow, not simply to get stated.
Entrepreneurs with considerable personal assets, an inventory of a technically proven product and promising sales figures have had considerable difficulty getting venture capitalists interested. Many such businesses are seeking funds and you will be competing with them when you try to get financing. What chance will you have in all you bring to the table is an unproven idea?
If you are successful obtaining financing, the investors will also expect detailed formal reports on a regular basis so they will know what is happening to their money. In other words, nothing's easy.
You may get some help from suppliers who think you have a chance at success. They hope to sell you more of their product, so they may be willing to give you a break on your first few orders or on the tooling to help you get started. However, you should plan on coming up with most of the money to get your idea off the ground out of your own pocket unless you have a rich relative or you meet an angel.
Ron O'Connor, P.E.
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