Archive for the ‘Venture Capital’ Category

Choosing the Best Venture Capital Consultant

Saturday, May 14th, 2011

The best course of action to take sometimes isn’t clear until you’ve listed and considered your alternatives. The following paragraphs should help clue you in to what the experts think is significant.

Finding a venture capital firm can be a taxing job. Imagine having to go through the profiles of these firms to determine if your proposed company fits their investment criteria, and then having to send your proposal to each of them. This will definitely consume your time and energy, as well as financial resources, without guarantee of favorable results. This explains the need for venture capital consultants.

What exactly do these consultants do? Basically their function is to find a venture capital firm to fund a start up company. But before this, he must know the kind of business that you want to put up. In this way, he will immediately know which firms to contact once you’ve given him your proposal.

This is done by reading the business proposal. You may have written the proposal yourself, or he may draft the proposal for you, for a certain fee. It is advised though that prior to contacting a consultant, your business plan must already be finished.

Aside from the added expense, it is important that you know beforehand what you really want so that the consultant can have something to work on. On the other hand, if the consultant makes the proposal for you, then you are assured that the proposal is attractive, brief and complete, increasing the chances for it to be approved.

During this stage, he must take time to know what you want. He must continue to ask questions not only about financing options but also with other aspects such as system of management and exit planning. A good consultant is someone knowledgeable of the different investment criteria as well as management styles and policies of these venture capital firms.

If you don’t have accurate details regarding Venture Capital, then you might make a bad choice on the subject. Don’t let that happen: keep reading.

Next, he must know the exact type of venture capital firm that you want to work with. You may want to work with a firm, an angel investor, or investment banker. He must also be able to give suggestions as to which type of firm would best suit the company or business that you wish to put up.

Some online consultancy firms provide all the necessary help that you will need. They can provide you with checklists, reports and sample business proposals. More importantly, they will help you in your funding application by posting them in their website.

The downside of hiring a consultant is, obviously, the cost. Consultancy firms can charge up to $2,500 for mere consultancy services. Aside from this, there may be other fees that they will charge such as retainer fees and other direct expenses. Some of these companies charge between $250-350 an hour.

Be wary of consultants who tend to give you sweet, enticing words. Chances are, they’re all hype and can’t deliver. Unfortunately, because of the increase of popularity of venture capital financing, many of them have abounded. So take extra care in choosing your consultant. Do some investigation. Instead of choosing freelancing consultants, maybe you can choose one who is employed by a legitimate consultancy firm.

A good venture capital consultant saves your time, money and energy. Choose the best one that you can find. You can find some of the through the internet or by word of mouth.

Some entrepreneurs can give you names of consultants or consultancy firms that offer this type of service.

Of course, it’s impossible to put everything about Venture Capital into just one article. But you can’t deny that you’ve just added to your understanding about Venture Capital, and that’s time well spent.

About the Author
By Anders Eriksson, proud owner of this top ranked web hosting reseller site: GVO

What the Definition of Venture Capital Won’t Tell You

Tuesday, May 10th, 2011

Venture capital can be a rather complicated set-up for beginners in the business world. While there may be lots of resources available on the topic, these articles are sometimes too technical for the ordinary person.

The definition of venture capital, in simple terms, is investment money provided by professional capitalists and venture capital firms to promising companies in the hope that it will make more money after a few years. Aside from its definition, here are some things to discuss about this subject.

Venture fund has a relatively short lifespan. The goal, then, is to maximize profit within a short time span. These capitalists and investors have developed strategies and business plans that are “proven” to yield results, but this is not the case always. Remember that their aim is a return of investment in a short time and not a lifelong business.

Aside from the profits that they seek to have, they also charge certain fees to pay their management staff. These fees are also taken out of the fund, making it run out sooner than expected.

As a general rule, only 10% of the investments become successful. If that were the case, perhaps you’d wonder why these companies continue to operate. Since these firms have tons of money, they’ve somehow managed to branch out their investments in several companies. The key to success, then, is to make more good investments to offset the losses. So when everything is taken into consideration, they end up gaining more than they’ve invested.

If your Venture Capital facts are out-of-date, how will that affect your actions and decisions? Make certain you don’t let important Venture Capital information slip by you.

If you consider this option, be prepared to lose control over your company for a couple of years. Because these investors and firms have spent big bucks to help you put up your company, they also have a say on how things get done. We’re talking of major stakes here, not just a couple of hundred dollars that you borrowed from a friend.

They usually assign somebody to sit as members of the board to take part and know the decisions that you make as CEO of the company. At the same time, they report to the firm what they think of how you run things, which can be crucial should you need additional capital later on.

Venture capital is one way to get into business with minimal capital. But remember that together with it are several requirements that you must comply with. These firms have developed plans which may have proved to be effective for past businesses.

But while it may have achieved success at one instance, it is not a guarantee that the same will happen to your business. There is therefore the possibility of failure. While it may be difficult and the stakes are rather high, the gains that you may receive later are sure to outweigh the demands and difficulties that you face at present.

Here’s hoping that this article made you understand the definition of venture capital better. To have more information, it is best to seek help from a professional. Ask a financial expert on the pros and cons of venture capital and how it can be availed.

He can also help prepare your business proposal to make it more attractive to capitalists and angel investors. There are a few websites which provide this type of service.

About the Author
By Anders Eriksson, feel free to visit his top ranked GVO affiliate site: GVO

Venture Capital Cycle ? How Does it Go?

Friday, January 7th, 2011

The best course of action to take sometimes isn’t clear until you’ve listed and considered your alternatives. The following paragraphs should help clue you in to what the experts think is significant.

Venture capital is something that most aspiring entrepreneurs are eyeing. This is because the deal is rather simple ? you submit the proposal, firms accept the deal and provide funds to finance it. Compared to bank loans which you need to repay, venture capital is paid by the firms and investors.

But while it may seem easy, the process may be a little complicated as you go along. Here is a simple discussion on venture capital cycle and how it works.

The cycle is basically made up of three stages: raising of funds, investment of such funds, and exit.

Before you can close a venture capital deal, you must first find a venture capital firm. Research on the firms available, and see which industries they are most inclined to. Your proposal must fit their investment criteria, otherwise, everything would just be a waste of time. The usual fields are biotech and greentech. If these are the types of businesses that you wish to enter into, then you are in luck.

The next step is to develop a business proposal. This you will submit to the firm. It is therefore important that the proposal is short but complete and well-researched. At this stage you may seek help from professionals and consultants. Make sure that there are no errors in it. When it is your time to present, be sure to have studied your proposal and the industry where it belongs in order for you to be able to answer questions that capitalists and managers may ask.

Once you begin to move beyond basic background information, you begin to realize that there’s more to Venture Capital than you may have first thought.

Granting that you’ve submitted a good proposal and was given the 1:400 shot at landing a deal, you have now completed the first stage of the cycle. The next stage is in the investment of such funds.

During presentation, you will be required to present a management team. It is important that this team be composed of competent people who are knowledgeable of the field or industry that you propose to enter. Aside from your own management team, the firm shall appoint managers to help, even impose, policies and decisions in the company. Since these firms have high stakes in the company’s success, it is only logical that they interfere with the decision-making process and in effect, have more control over the company than its owner.

During exit, the funds are liquidated and returned to the investors. This usually happens within 3-5 years, even sooner, if the return of investment is very high. An exit may take different forms, such as merger and acquisition, buyout and initial public offering or IPO. While others may have succeeded in earning more than 500% of their initial investment, there are likewise others who failed. Also, a big chunk of the funds goes to the expenses of the firm, such as management fees, consultation fees, and other fees.

Understanding venture capital cycle will make you better, more efficient entrepreneurs. That is why it is important to do some research, read articles, even enroll in a venture capital course. Furthermore, investigate on the trends of the industry that you want to enter into.

No entrepreneur became successful just by mere luck or chance. Any entrepreneur will tell you that you need to study and understand what you’re doing in order for you to be successful.

About the Author
By Anders Eriksson, proud owner of this top ranked web hosting reseller site: GVO

Astellas Venture Capital: Aim Big

Tuesday, December 7th, 2010

Imagine the next time you join a discussion about Venture Capital. When you start sharing the fascinating Venture Capital facts below, your friends will be absolutely amazed.

The foundation of every business, other than its product, is money. Earning money these days is as hard as finding one. Apart from a competitive market, a worldwide economic recession is also looming ahead. Venture capitalists have also become more cautious since losing from the dotcom bubble burst. Fortunately there are still venture capitalists willing to take on start up companies.

Science and technology has been a great interest for private equity firms. They prove positive returns in the long run as demands of a fast pace world continue. In the world of biotechnology, Astellas Venture Management is one of the sources of venture capital funds.

The company focuses on start up biotechnology companies. Its investment portfolio includes public companies such as Adherex Technologies, Memory Pharmaceuticals, and EPIX Pharmaceuticals. Private companies under them include F2G Ltd, FASgen, Inc., TaiGen Biotechnology Co., Ltd., and Alba Therapeutics Corporation.

Astellas established a branch in the America in 2006. The headquarters were located at Los Altos, California.

Astellas and biotech

Most venture capitalists invest in high technology businesses. Most of them prefer companies that apply innovative technology to their product or services. They invest large amounts of capital to start up businesses that have a lot of growth potential in science, research and development.

Truthfully, the only difference between you and Venture Capital experts is time. If you’ll invest a little more time in reading, you’ll be that much nearer to expert status when it comes to Venture Capital.

One of these private equity firms is Astellas Venture Management. Astellas was originally founded in Tokyo Japan. The company was formed after Yamanouchi Pharmaceutical Co., Ltd. and Fujisawa Pharmaceutical Co., Ltd. merged. Both of these companies have already been investing in biotechnology companies in Japan before Astellas was formed. Astellas is now managing funds of clients from Yamanouchi and Fujisawa, including new limited partnerships.

The focus of AVM is to find companies that have innovative technology and assist its growth by using its experience and network in the field of biotechnology. They offer investments for companies that have the potential to become leaders in the global market. They prefer emerging companies that are developing pharmaceutical seeds and new drug platforms.

AVM is obviously a big firm. They have a comprehensive resource available to their clients from personnel networks to marketing operations. Apart from investments it also provides companies with scientific and technical proficiency, experience in drug development, marketing knowledge and long-term perspective. This is a big opportunity for those companies who want to have rapid growth and success.

For those companies with a very ambitious management team this will be good partnership for them. AVM caters to no less than large markets that span globally not just locally. Their parent company called Astellas Pharma Inc. is one of the top pharmaceutical companies. This gives them the edge when it comes to experience. They are a cut above the rest when it comes to disease areas such as Immunology and Urology. The form is interested in the fields of Cancer, Pain, Diabetes and metabolic diseases.

Having a pharmaceutical company is both good for entrepreneurs and investors. One of areas that are cannot be touched by recession is health care and medical services. Although being responsible for the well being of many people is a challenge it can also be rewarding.

If you wish to delve in to a more competitive atmosphere and target a large market then you can go AVM, provided that you do have the scientific capabilities to back it up.

About the Author
By Anders Eriksson, feel free to visit his top ranked GVO affiliate site: GVO

Finding Angel Venture Capital in Honolulu

Saturday, December 4th, 2010

The following article includes pertinent information that may cause you to reconsider what you thought you understood. The most important thing is to study with an open mind and be willing to revise your understanding if necessary.

More and more companies worldwide are seeking venture capital to finance their companies. This is shown by the remarkable increase in the number of investors and firms. Firms spend billions of dollars yearly on these investments. As a result, firms have expanded their network and there emerged this new group called angel investors.

While the firms in the past concentrated on building companies within their geographical area, firms and angel investors have gone international that they are now funding companies in some parts near the Pacific and even as far as Southeast Asia. That is why even if you reside in Honolulu, you can still find angel venture capital.

Angel investors are basically the same as venture capital firms in that they help finance start-up companies. But the similarity ends there. Angel investors are wealthy individuals who are willing to invest personal funds, while firms are sometimes funded by other institutions. They may be composed of a few or more investors, depending on the amount that they contribute.

Their investments usually range from a few thousand dollars to about $2 Million, committing to contribute specific amounts of investment every year rather than to give the amount in bulk at one time. Venture capital firms have higher investments because they can finance up to $10-20 Million.

Firms usually focus on the fields of technology in their investment criteria, while angel investors are open to other industry sectors like software development, production and services. This means that if your proposal is innovative and not technology-related, then there is a bigger chance for you to raise angel venture capital than ordinary venture capital.

While firms may finance companies in their later stages and also in their expansion, angel investors focus more on start-up companies, resulting in a more risky investment.

Hopefully the information presented so far has been applicable. You might also want to consider the following:

Because of the higher risk, there is the necessity to yield a higher return, between 20-30%. That is why they are more careful in screening and choosing their investments. Members themselves help in the screening process. Presentations are done in their regular meetings, and it is during such time when they individually decide to invest or not. Application is often a multi-step process. What investors usually look for are companies with a potential growth of 1,000% in 5-7 years.

If you seek angel venture capital, you must have a fully-developed product. Because capital is rather minimal, it must be spent in the actual production and marketing and not on product development or research. A unique, innovative product or service will greatly impress these investors.

Also, show them that you have potential customers. Make a demonstration on how fast the business is most likely to grow. Lastly, find a strong, competent management team. This will give the investors confidence in your proposed company.

Having rather smaller resources than most firms, these investors operate in networks. This is to share the risk among them.

It is estimated that there are 225,000 angel investors and thousands of angel investor networks in the US, and still growing. This means that there are more angel investors than venture capital firms, which are approximately 600. With the many investors available, finding angel venture capital in Honolulu should not be a problem.

Browse through websites, make a few searches. Some angel investors, although not based in Hawaii, do finance companies in this State.

That’s how things stand right now. Keep in mind that any subject can change over time, so be sure you keep up with the latest news.

About the Author
By Anders Eriksson, feel free to visit his top ranked GVO affiliate site: GVO

Venture Capital and Its Characteristics

Tuesday, November 2nd, 2010

Are you looking for some inside information on Venture Capital? Here’s an up-to-date report from Venture Capital experts who should know.

More businessmen are getting into venture capital. Whether as entrepreneurs or capitalists themselves, more people are getting into it because of the promise of fast, easy money in a relatively short time. While many may attest to the financial security that the scheme brought, there are also just as many unfortunate stories that have circulated as well. Here are some characteristics of venture capital that any businessman must know.

Venture capital firms are made up of individual investors or corporations. Sometimes the participants are institutional investors like insurance companies, foundations and pension funds. Aside from these firms, there is also what is called as angel investors. These are individuals or a smaller group of investors that operate the same way as venture capital firms. They all function the same way, and that is to fund small and starting businesses, ending in a buyout, merger or IPO.

Finding start up capital is not easy. First, you need to fit in the investment criteria that these firms provide. There are several of them listed in directories or the internet. The line of business that you have in mind should match that of the firm.

Otherwise, there is lesser chance for your proposal to be approved. Also, you need to have a business proposal that would persuade the firm. It must be concise, well-written and well-researched. With the hundreds of proposals that they get, it is crucial that yours should impress them.

Once you begin to move beyond basic background information, you begin to realize that there’s more to Venture Capital than you may have first thought.

Venture capital investments are different from venture capital loans. For the latter, the risk is borne by the investor and not by the investment firm. The entrepreneur must repay the amount plus interest, regardless of the company’s success or failure. For venture capital investment, it is the firm that bears the risk. This explains why more people opt for venture capital investments than loans.

Since the firm bears the risk, it is therefore the one entitled to a major part of the profits. These investors seek maximum gain at the shortest period possible. They’re eyeing on at least a 100%, even 700%, return of their investment. That is why they tend to have more control over the company than its entrepreneur. If you have problems with relinquishing control over the company, then this scheme is definitely not for you.

The good news, though, is that these capitalists are experts in the business field. Their policies and strategies have already been tried and tested. Should any of their plans fail, they are sure to have back-up or alternative plan. In other words, these people know more than the new entrepreneur and can help a great deal in the management of the company.

Knowing the characteristics of venture capital may prove to be useful to any businessman. With this simple guide, you will have a glimpse of what it’s like and what to expect from it. This should be the first question that any aspiring entrepreneur should ask: is this right for my business? Venture capital is not fit for everyone.

If you do not fully understand what it is and how it works, then you might as well not consider it ? yet. Learn more about the topic by reading more articles and acquiring more information. If it has worked for others, then there is no reason why it shouldn’t work for you too.

About the Author
By Anders Eriksson, feel free to visit his top ranked GVO affiliate site: GVO

Venture Capital: The Basics

Sunday, September 26th, 2010

If you have even a passing interest in the topic of Venture Capital, then you should take a look at the following information. This enlightening article presents some of the latest news on the subject of Venture Capital.

A lot us have ideas, but the real challenge is making them a reality. There are a lot of opportunities in the business industry but the real challenge is making out. Earning money is as difficult as finding. No one really want to be a cubicle drone but without any capital most of us become regular employees.

There are ways to start a business. If you have a great idea that has a big potential, there are ways to access funds for your business. Venture capital funds are one of the sources of seed capital for your start up company.

Venture capitalists invest on start up companies with big potential and high growth. These are usually high technology companies that may lead returns in the long run. The downside of this is the venture capitalists get a share of your company and have say on the company’s decisions. A person who has always dreamt of becoming their own business may find this a tad uncomfortable.

The low down on Venture capital

There are some venture capitalists that provide financial services to start up companies. These are usually companies that are entirely new, with mostly an idea and a business plan in their hands. Venture capitalists are willing to make risky investments on businesses that banks loans and capital markets are afraid to make.

Companies that they invest in are usually high technology business such as computer and electronics. They are also interested in development and research.

So far, we’ve uncovered some interesting facts about Venture Capital. You may decide that the following information is even more interesting.

Venture capitalists are general partners that offer limited partnership to a company. These general partners are usually made up of executives from a financial firm. They have the ability to pool in a large amount of capital. These funds are usually taken from pension, foundations, insurance companies, financial endowments and financial institutions.

This may seem a very good idea for a starting company but there is downside to this. In the business world nothing is free and general partners require 20% of the net profit of the company. They also need a 2% management fee every year.

It’s also not easy to attract venture capitalists. They often have strict requirements. They will no invest on companies that don’t have proof of their technology. They may agree to meet up with you but that does not mean you’re already in good terms. Most of time 999 business plans get rejected out of 1000. They can reject you for a lot of things that may even seem trivial at the moment. The hurdles don’t stop there.

General partners may help your company to jumpstart and expand. But they won’t just let you make the decisions when they have invested a lot of money on your company.

In some instances this may lead to problems especially when general partners only care about making money for themselves. They may invest in advertising but not in the right places for your customers. Some of them like to spend too much money and the sudden growth is too fast.

Before you find yourself a venture capitalist make sure you are aware of their impact in your company. A venture capital fund may seem convenient at that time but you should always look ten steps ahead. Look for a general partner that will help your company grow not just add weight to their wallets.

If you’ve picked some pointers about Venture Capital that you can put into action, then by all means, do so. You won’t really be able to gain any benefits from your new knowledge if you don’t use it.

About the Author
By Anders Eriksson, feel free to visit his top ranked GVO affiliate site: GVO

How and Where to Find Venture Capital Insurance

Saturday, September 25th, 2010

This interesting article addresses some of the key issues regarding Venture Capital. A careful reading of this material could make a big difference in how you think about Venture Capital.

Venture capital insurance is one topic which may seem complicated to most people. But once you try to understand how the system works, you’d soon discover that the topic is not that difficult to grasp. This explains why more and more new entrepreneurs have chosen this financing alternative than the more common ones like bank loans and mortgages. Through books and the internet, you will learn more about venture capital.

Venture capital is provided by venture capital firms to start up or build small businesses. The idea is to provide funding and control the company operations in order for the company to grow within a couple of years, and for the firm to receive more than what it has invested. That is why most firms focus on high-return industries such as those related to technology and internet businesses.

You can find some listings of venture capital firms in your area. Or it can be that someone you know also knows some people working in these firms. Referrals or recommendation from your friend will give you an edge for approval of your proposal.

Do not submit your proposal to any firm available. That would only waste your time and energy. It is important that your proposal be in the same field as the investment criteria of the firm that you’ve chosen, so do some research beforehand. Also, this firm must also be compatible with your company’s financial needs as well as growth strategies.

There are ways to submit your proposal, the most common of which is through email. In doing so, make sure that you personalize the correspondence. Know where and to whom the email be sent. Nothing can be more distasteful than mass emails. Another way is by posting them in the internet. There are legitimate sites where you can post funding requests. Some capitalists find it more convenient to browse through these websites rather than receiving massive emails everyday.

Now that we’ve covered those aspects of Venture Capital, let’s turn to some of the other factors that need to be considered.

Avoid submitting them in trade shows. For one, you are required to pay before you can attend. Also, the capitalists that attend these shows are second-rate ones, not the type of businessmen which you would want to deal with.

Since these industries have made extensive research in their field of choice, and since they have the necessary experience in managing related companies, it is therefore important that you draft your proposal well. Make a thorough research.

Know the product that you wish to sell and the market that you wish to enter. Your proposal should be short yet complete. More importantly, it should be truthful. These investors can easily detect any false claims or mere hype in the proposal.

There are some softwares available that will guide you through the drafting process. There are also some websites which provide for outlines that you can follow. If possible, you must seek help from a professional to check what you’ve drafted before submitting them.

Finding venture capital insurance is one thing. Working with venture capital funds is another story. It takes a lot of hard work and perseverance in order for one to be successful in the business that you wish to establish.

Lastly, there is no assurance of success or profit, not even for the venture capital firms. But of course, if you hit the jackpot, the rewards can also be high.

If you’ve picked some pointers about Venture Capital that you can put into action, then by all means, do so. You won’t really be able to gain any benefits from your new knowledge if you don’t use it.

About the Author
By Anders Eriksson, feel free to visit his top ranked GVO affiliate site: GVO

What is Venture Capital Fund?

Monday, September 6th, 2010

When you think about Venture Capital, what do you think of first? Which aspects of Venture Capital are important, which are essential, and which ones can you take or leave? You be the judge.

Having your own business is one of the dreams and goal of the average person. Most of us would rather be their own boss than become someone else’s employee. Unfortunately having your own business is not easy. Money is difficult to earn and more difficult to find, well unless you are already well off.

Starting your own business may take a lot of thinking, guts and money. Fortunately new entrepreneurs have other options in finding funds for their business. A venture capital fund is a private equity from outside investors.

People who provide these funds are called venture capitalists. These are a group of wealthy investors, financial institutions and investment banks that can gather investments. They invest in new businesses that are still starting in the industry. In return they get a portion of the equity and have a say in the company’s decisions.

Business ventures

We often hear business ventures from rich people. Most investors who have enough money will embark on a limited partnership with a new company. This may sound good for aspiring entrepreneurs but it is not easy. Venture capitalists have now become more conscious and careful since the dotcom bust. They may not mind taking the risk but they have become more selective on where to invest their money.

You may not consider everything you just read to be crucial information about Venture Capital. But don’t be surprised if you find yourself recalling and using this very information in the next few days.

Venture capitalists are usually executives from a firm. These investment professionals are referred to as limited partners. These are a group of people who have access to large sums of money for capital. These funds usually come from private and state pension funds, foundations, financial endowments, investment companies and other institutions.

Investors are usually grouped according to their interest. Most venture capitalists invest on starting companies. These companies are usually high-technology businesses such as electronics, computers, research and development. These funds usually last for ten years. The general partners or VCs receive a 2% management fee every year and require 20% of the net profits. They invest in more than one starting company for more returns in the long run.

Venture capitalists are very selective and most of the time has strict requirements. Apart from that they also have a say in the company’s decisions which may not be good for the company. Venture capitalists are known to invest a lot of money in a short amount of time.

They may invest in advertising your company for magazines but are not exactly suited for your type of customers. Companies end up spending money at a faster rate before they can learn how to do it and earn positive returns in the process.

For other entrepreneurs who have a hard time getting their business plans approved they may turn to angel investors. Angel investors are individuals who also have access to large amount of capital and are willing to invest money on highly speculative start up companies. These businesses usually don’t have a solid proof for their technology or have a great potential for its product or services at the start.

If you really need a venture capitalist fund make sure that you will pick a general partner that will work with you not just for the money. Venture capitalists can kick out the founders out of the way and bring in their trained CEOs. At the end of the day it is still a business that you can either work for or have it taken from you.

About the Author
By Anders Eriksson, feel free to visit his new GVO affiliate site: GVO

Making a Difference with Non-Profit Venture Capital

Friday, August 27th, 2010

Most of us don’t really care much about making a difference. Most of us didn’t even care about pollution and global warming until gas prices soared, forcing people to swap their SUVs to hybrid vehicles. Money makes the world go round they say, and even simple dreams get tainted by commercialism.

Artists don’t just play music but also convince their fans to buy overpriced merchandise just because it has the name of their idol printed on it. Fortunately it has become more and more obvious to the people that there are others who barely manage to get by. Non-profit organizations also seek venture capital to help others.

Most of these are non-profit organizations who aim to help and make a difference in their community. Nowadays fraudulent schemes abound. This is one of the reasons why venture capitalists don’t invest their money in these type organizations, besides the fact that they won’t earn anything in return.

Non profit organizations for the benefit of other people

Non profit organizations do exist to help other start up businesses. A non profit organization called Alliance of Angels provides funds for new businesses. It an organization composed of Angel investors. There are also other non profit organizations that exist like them. Unfortunately, like Alliance of Angels, screening can be strict and very competitive.

They also create non profit businesses that are involved in a movement called a social enterprise. These social enterprises, such as Goodwill Industries and Salvation Army, provide job opportunities for disadvantaged individuals. This includes individuals with mental and physical disabilities, don’t have any work experience and lack education. Other non profit businesses also hire low income high school students and drug abusers.

It seems like new information is discovered about something every day. And the topic of Venture Capital is no exception. Keep reading to get more fresh news about Venture Capital.

The latest development today is that non profit businesses don’t just provide job opportunities. Organization such as Food from the Hood, Pueblo Nuevo Development and Chrysalis are an example of this. They create programs that train and develop a disadvantaged individual’s skill to be able to find a regular job with a living wage. These businesses are able to sustain themselves, which in turn enable them expand and help more people.

Others provide capital for businesses that are focused on making a difference. The Social Venture Capital Organization provides seed capital and grants to businesses that have ideas valuable to their community.

They are looking for businesses that are geared towards addressing key social concerns such as poverty, hunger, malnutrition, hate crimes and crime prevention. They provide counseling and management support for non profit businesses to be able to turn their ideas to reality.

In this money driven world it is a relief that organizations like these exist that is willing to make a difference in their community. Organizations like these encourage non profit businesses to start and grow.

There are also firms that encourage profit oriented businesses that bring make an impact in their community. The downside is they may encourage economic development in their community but not to the benefit of the people who live in it that also need help.

If you have non profit business seeking venture capital funds you can approach this type of organization. Although they may not be as many as traditional private equity firms they still do exist. This time they are willing to invest in a company not out of pure gain.

So now you know a little bit about Venture Capital. Even if you don’t know everything, you’ve done something worthwhile: you’ve expanded your knowledge.

About the Author
By Anders Eriksson, feel free to visit his new GVO affiliate site: GVO