Tag: venture capitalists

Finding enough cash to get your small new business started or keep it running can be one of the biggest challenges you face as an entrepreneur. Here is a list of 8 different sources of business funding that can save your company’s future: 1. Friends and Family Before you groan at the idea of hitting up your loved ones for cash, you should know that friends and relatives are one of the most common sources for startups. No one knows you or believes in you more than this crowd. And they may be […]

Venture capital is a buzz phrase these days among entrepreneurs. Young companies that have secured business funding from venture capital are seen as rising stars with great potential. And yet, while large initial investments can help a company get off the ground, there are plenty of reasons why bootstrapping may be a better idea. Here are the top three: 1. Autonomy There is no substitute for having total control over your business. It is your brainchild, after all. You are the one who is passionate […]

When your business is ready for that next round of funding, you might start looking for angel investors or venture capitalists to help finance your growth. However, the terms are not synonymous – even though they both contribute to your business funding, their motivations and roles are often very different. Here are a few of the main differences: Pay Schedule Venture capitalists (VCs) work for a group of professional investors who all contribute a portion of money to fund many projects. VCs […]

Acquiring venture capital can be a huge boost for a fledgling business or one ready to move on to the next level. Venture capital is notoriously difficult to obtain however and entrepreneurs are always eager for tips on wooing VCs. A recent study headed by Stanford finance professor Ilya A. Strebulaev got to the bottom of what matters most to venture capitalists when it comes to investing in a new company. The study call “How Do Venture Capitalists Make Decisions?” surveyed 885 venture capital […]

The world of venture capital is constantly evolving, with investors looking for different products and services. There are a few things that tend to remain a priority with venture capitalists, however. If you are hoping to attract some investment capital to your firm, here are a few of those traits that VCs are hoping to find. Capable Networkers It is no secret that getting face-time with venture capitalists is much easier if you network your way to them rather than cold-calling or emailing. […]

If you are prepared to give that information, you can kick your stress level down a notch and get to work at finding the right VC or angel investor

A successful investment campaign for your growing company will include pitching your firm to the right investors or lenders. And part of convincing those people to invest their cash in your company is presenting them with a succinct and promising business plan. The first two parts of this article discussed the income statement and balance sheet, and this last part goes over the importance of the cash flow statement. A cash flow statement tracks how your company generates and uses cash during a […]

Angel investors and venture capitalists get a lot of attention when it comes to small business financing, but in reality startups get much more business funding from family and friends. A report from Fundable.com found that 2013, friend and family members poured $60 billion into small businesses while venture capitalists invested just $22 million and angel investors contributed only $20 billion. In fact 38% of all startup entrepreneurs in 2013 raised money from their loved ones, with the average […]

After the initial startup phase, most small companies will come to a point where they need a blast of cash to keep business flowing on an upward trajectory. It may be that the firm needs to invest in equipment, more inventory, or additional staff. Whatever the reason, getting ahold of more money is essential. Two of the most talked-about ways of securing funds are small business loans and venture capital (VC). Here’s how they stack up against each other: Small Business Loan Pros – Taking […]

In the business world, venture capital is a highly sought-after commodity – outsiders willing to invest their own money into a growing company in exchange for equity or other compensation.