Easy Ways to Get Investment from Venture Capital

Venture Capital

How to Get Investment from Venture Capital Have you ever heard of the venture capital investment? Venture capital is a form of cooperation in the form of capital investment financing into a private company within a certain period. Venture capital generally makes it intends to submit to the capital in cash in exchange for a number of shares in the company.

Startups / start-ups and do not meet the requirements (standards founding companies) in need of venture capital as capital loans are usually obtained from a group of investors, individuals and institutions and banks.

But unfortunately because new companies are still standing, they usually have difficulty obtaining venture capital, in other words difficult to gain the trust of the investors. Nonetheless, new businesses do not have to fail to get capital. There are ways to get investments from venture capital professional investors accepted that proposal.

What Is Venture Capital?
"Venture capital is an investment in the form of financing in the form of equity in a private company as a business partner (investee company) for a certain period of time. In general, this investment is made in the form of capital handover in cash in exchange for a number of shares in the joint-venture.

Venture capital investments usually have a high risk but gives a high yield as well. Venture capitalists or foreign language known venture capitalist (VC) is an investor who invests in venture capital firms. "~ Wikipedia

Advantages and Disadvantages of Venture Capital

Often venture company targeting enterprise startups / startups are growing and need capital. In contrast to the banks, in terms of financing, venture capital firms into those who act on the company's management pilot.

1. Advantages of Venture Capital :

1. The ability in terms of business network memperluan
2. Having a system that's repayment
3. A source of funds / capital and also helps monitor business developments
4. Opportunities to capitalize the venture capital firm's reputation, already the

2. Disadvantages Venture Capital:

1. If startups become successful then the repayment of funds also great
2. The company's founder could lose control and lose ownership of businesses in the path for a majority stake and management business owned by venture capital firms
3. Often, the venture capital company refused the demand for capital because they only wanted to provide financing only on startups that are considered good

This is How to Get Investment from Venture Capital

1. Create a Business Plan (Business Plan)

To apply for venture capital investment is certainly potential recipients must have a good business plan which mature in thinking and writing.

In a sense you have to make a summary that contains the efforts being dirintis.Bisnis this plan should at least include several aspects as follows:

1. Detailed description of the business or business
2. The background and experience of the corporate team
3. Analysis of business competition and solusisolusi possibility of problems
4. Detailed financial transparency
5. marketing system

The above documents you need to provide and pejalari before meeting with potential investors. In essence, investors actually going to ask about the chances of success you achieve. So that all possible questions and issues that prompted investors must be answered carefully, but still be careful - careful.

A group or institution venture capital providers typically receive hundreds of business plans each year, but you need not despair.

If this is the business plan you offer a very convincing able to provide many benefits for you and also the investors, then it is possible your business can get capital. Even if you are lucky, you can get capital without having to go through other stages.

2. Make Appointment

If you submit a business plan to attract attention and interest of the investors, you'll move on to meetings or introductions. The meeting does not mean that can get venture capital, but the meeting was conducted as a form of presentation of your business plan.

As mentioned previously, before getting to this stage, you have to really understand your business plan and possible problems. Ibaratkan's say you're selling an idea. If you can master and in accordance with the interests of investors you will go to the Due Diligence phase.

• Due diligence

If you have entered this phase, a capital recipients will receive calls, emails, interviews for evaluation melakukann business. If never contacted, try to be patient and keep good communication with investors in order to immediately obtain venture capital.

• Documents Treaty

This is the most important part of the business cooperation. A candidate receiving good capital properly examine each document's contents so that the future agreement does not feel disadvantaged. This stage is the stage of discussion and mediation generally takes more than two weeks to meet the legality of the document.

You can make a bargain with the relevant investor profit-sharing and possible losses through agreements binding document. But it must still ensure that your business benefits outweigh the disadvantages opportunity to consider the needs of the market.

Note:

When meeting with potential investors, keep in mind that they give invertasi because they understand that a business needs funds to survive and solve the problems of consumers with products developed. In return, investors will get shares with a value far greater than the investment incurred.

Generally, these investors will invest in many new business or growing startup. This was done in anticipation of what the future when the business stopped midway. Therefore, do your best to start from scratch to the point of presentation so that they are sure that the business that was presented really have a clear prospect.

Share this post