What really are your chances of receiving a venture capital investment?
The reality is that 99.9% of all companies who receive any capital at all for their business, do not receive "Institutional Venture Capital". Currently there are more than one million new businesses formed each year in the United States alone and at the time of this publishing there were over 1,000 U.S. based venture capital firms.
The fact is that only 0.1% of all business investment capital comes from established Institutional Venture Capital funds.
Most entrepreneurs make their biggest mistake by spending 100% of their valuable time chasing Venture Capital that they will never have a hope of receiving, rather than spending their time pursuing that 99.9% of the readily available capital that they have a much better chance of obtaining. The result for most is personal disappointment and business disaster.
Venture Capitalists are overrun with business plans and invention ideas. The reality is that they have a limited amount of time and resources to carefully select the businesses that they are even willing to consider. To put it in perspective, the average venture capital firm that looks at 2,000 plans a year might consider 20, perform due-diligence on 10 and actually invest in 2 or 3.
So, how do you know if you and your business plan will even get to the consideration stage?
Venture Capitalists are looking for huge returns from defendable and sustainable revenue models. They are looking for proprietary technology and large barriers to competition entry. They are looking for experienced successful management teams and they are looking for entrepreneurs who come well recommended from sources that they trust.
On the pages that follow you will find an initial qualification test that will tell you if you even have a chance of being considered for an investment. Before you run off in search of venture capital please take the time to test yourself. If you score above 80, then seeking venture capital may be right for you. If your score is less than 80, I implore you to not waste your time seeking institutional Venture Capital and proceed directly back to BusinessFinance.com to consider your other options.
Regardless of your score on the Venture Capital Qualification Test please complete this book. The information and resources in this book will be an excellent guide in your quest to plan, fund and grow your business.
BusinessFinance.com is dedicated to helping you find the financing that is right for your business. Check back for our resources on: government business loans, commercial lines of credit, equipment leasing, cash for your purchase orders and receivables, commercial real estate finance, unsecured lines of credit, asset sale and leasebacks, from over 4,000 sources of capital for your business.
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