Private investor capital is your capital source for venture financing
Private investor capital is capital invested by private individuals into your business venture. They contribute their skills and money to start-up companies. Typically these private investors are successful entrepreneurs that offer their expertise, experience, and contacts which is invaluable to your new venture.
The major advantages to acquiring capital from a capital placement firm:
- It takes much less time to meet with and receive funds from a placement firm than a typical venture capital firm
- The due diligence is substantially less involved
- They typically expect a lower rate of return
- Usually take less control in the management of the business, setting of targets, staffing, etc. than a typical venture capital firm
The situation facing most new businesses today is that there is a critical need for start up and early round financing. And the vast majority of these companies do not qualify for loans from traditional lenders. Oddly enough, last year there were a record number of new businesses funded with a record amount of venture capital dollars.