VC provides funding for business growth.
VC (Venture Capital) funding is available for businesses that have great potential for profitable success. This includes companies that have a gross revenue potential exceeding $25 million. In order to achieve this, a company typically will have a unique product or service with a large national or international market potential. It is important that when sold the unique product should generate at least a 50% profit. Strong management also makes a huge difference in the eyes of the VC firm that invests in your company.
The VC firm will not hesitate to invest in all stages of a company. If your business has the right product they will invest in the startup and the expansion. The investors prefer businesses that have been around for a few years and have been producing a profit during successive years. This can prove that the management team is strong within the organization, and that the business is in a good market.
Not all businesses qualify for VC financing so it is important for the business to make sure they have their business credit scores in place to help with obtaining necessary business capital. These business credit scores work exactly like personal credit scores, and are pulled by lending institutions when determining whether they should loan money out or not. Our business finance coach shows you step by step how to get your credit scores in place so you get approved for the financing your business needs to succeed. We also provide a free business capital search engine that has over 4,000 sources of funding for your business.
More information on VC funding is available below.
|“Seventeen venture capital firms responded.It was better than Pratt’s or the NVCA directory!”
Shawn Buckley – CAI Tech
|Capital Type||Capital Type Definition|
|Equity Loan||Offer of an ownership position to induce the loan or can be a note that has an option to convert from debt to equity.|
|First Round Funding||Typically funding that accomodates growth. Company may have finished R&D. Funding is often in the form of a convertible bond.|
|Second Round Funding||Maturing company where a future leveraged buyout, merger or acquisition and/or initial public offering is a viable option.|
|Later Stage Funding||Mature company where funds are needed to support major expansion or new product development. Company is profitable or at a breakeven point.|
|Merger and Acquisition Funding||The combining of two companies. If one company survives, it is a merger. If both survive, it is an acquisition.|
|Mezzanine Funding||Your Company has made good progress which now makes positioning for an Initial Public Offering (IPO) viable. Venture funds are used to support the IPO.|
|Seed/Startup Funding||The earliest stage of business funding and given typically with no operating history. The investment is based on a solid business plan, the background & experience of your management as well as your target market and financial projections.|