venture capital
venture capital questions and answers
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Q: Venture Capital?
How does a Venture Capital work? Where can I find such a company that provide services for around the globe business and clients?
A: mutual funds .like ids .are listing venture funds
Q: What is a venture Capital and what is the role of a venture capitalist?
At what point can a person become a venture captalist and what authorisations do they have over the company they have invested in? I would also like know how a venture capital would be different from any other investment
A: Venture Capital is an investment in the early stages of high-growth start-ups. It is typicallly in high-technology firms. A good venture capitalist not only puts in his money but also gives valuable strategic advice and guidance to take the company to greater heights faster. In return, the young entrepreneur may give the VC a board seat on his company. As a result, the venture capitalist will have to be someone who has extensive knowledge of various industries and know how they perform over the years, the trends and much valuable list of contacts. A venture capital investment, unlike a regular stock investment, is much much more riskier but could potentially be much much more rewarding and fulfilling. Out of every 10 deals a VC invests in, 2 are likely to bring in the VC big money. Depending on the VC's negotiations with the entrepreneur, the VC can have a controlling power over the entity, depending on what majority of the stock equity he holds in the company.
Q: What kind of corporation to form suitable for venture capital?
I am in process of registering c corporation. As i will be going for venture capital, i want to make sure that i register everything thats required for venture capital. Is c corporation right choise? Is there anything else you know i know be aware while registering business?
A: You need to speak with a corporate attorney, as the laws regarding incorporation vary with the state.
Q: what is the best way to obtain venture capital for a business idea?
I am looking for a guide on how to approach Venture capital firms with an idea for a business in the technology sector.
A: First, write a business plan. An idea without written plan is not a viable business idea. Try to concise the business plan into major blocks of market, product/service, marketing plan, how to deal with competitor or lack of competition (brand new product/service), cashflow estimate, capital plan (seed or development or expansion), and --very important-- brief resume of key people. No need to write lengthy pages. 2-5 pages are okay.
Second, bring plan to trusted friends and hear an honest feedback. If you get a nod, then you go to next step. If no, go back and refine your idea/plan.
Third, bring the plan to venture capitalists. Search available venture capitalist in the internet. Or you may send straight to Garage.com.
Q: What is the minumum requirement for venture capital?
What is the minumum requirement to get venture capital?
Do I really have to incorporate my business or will it work if I open a business checking account?
I need to know what is the requirement.
A: In order to be considered for Venture Capital Funds, you will need to have a very solid business plan, an excellent management team, commitment (generally in the form of funds invested) from the founders, a timeline to be self-sustaining without the assistance of venture capital and most importantly a targeted return on investment that is extremely high (usually around 40%).
Because venture Capital firms are seeking such high returns, they are not suitable for many start up businesses, especially considering that many venture capital firms want their 'loaned' money PLUS their return on investment (40%) within three to seven years. Venture capital is most commonly beneficial for companies that require up front monies for non-physical assets (software and other types of technology firms) that simply can't be bank financed since the assets are not pieces of equipment or property per se.
Venture capitalists invested some $6.6 billion in 797 deals in United States during the 3rd quarter of 2006, according to the MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association based on data by Thomson Financial.
A recent National Venture Capital Association survey found that majority (69%) of venture capitalists predict that Venture Capital investments in United States will level between $20-29 billion in 2007.
Q: what is a good venture capital company for a start up clothing company?
I have a great idea that when launched will be in high demand. If I start out with my current budget, my inventory will not match the demand. I would like to talk to a venture capital company or angel investment company to see if they would agree; preferably something familiar with pop culture and urban clothing.
A: Business 2.0 http://money.cnn.com/2006/02/28/magazines/business2/angelinvestor/index.htm has a very good article on angel investors, what they typically look for, what kind of investments they support, etc.
You may want to go and pitch your ideas where investors gather. Here are some places where angel investors come and those looking for funding can come and pitch their business plans. Be sure to have a strong business plan and describe what makes your business idea stand apart:
Angel Capital Association http://www.angelcapitalassociation.org
Angel's Forum http://www.angelsforum.com
Band of Angels http://www.bandangels.com
Common Angels http://www.commonangels.com
Keiretsu Forum http://www.k4forum.com
Launchpad Venture Group http://www.launchpadventuregroup.com
New World Angels http://www.newworldangels.com
New York Angels http://www.newyorkangels.com
Robin Hood Ventures http://www.robinhoodventures.com (charges $250)
As for venture capital firms, here are some directories that you can use to search for VCs. You must have a potentially highly profitable idea for VCs to even start listening to you -- it will help if you have on your team a person who can open VC doors for you
http://www.vfinance.com/
http://www.infon.com/product/VC/search.htm?PHPSESSID=f9ceaa1df1f5673bb1c501ffb47e642f
http://www.vcaonline.com/directory/invdir.asp
Q: How can I raise capital for a venture project?
i am going to set up a bank and have prepared all the requirements. i am going to venture capital for this project and the plan completely . i want to choose a bank manger team and one or investors that can help me in raising
the capital invest for running the project .
we need millionairs or billionairs to help us . the problem is that at the moment i have not any company or valuable
certificate to get a loan .
another options is loans from banks but we have not enough credit to contract with them or do not know how to dial with them .
A: You may want to go and pitch your ideas where investors gather. Here are some places where angel investors come and those looking for funding can come and pitch their business plans. Be sure to have a strong business plan and describe what makes your business idea stand apart:
Angel Capital Association http://www.angelcapitalassociation.org
Angel's Forum http://www.angelsforum.com
Band of Angels http://www.bandangels.com
Common Angels http://www.commonangels.com
Keiretsu Forum http://www.k4forum.com
Launchpad Venture Group http://www.launchpadventuregroup.com
New World Angels http://www.newworldangels.com
New York Angels http://www.newyorkangels.com
Prairie Angels http://www.prairieangels.org (charges $125 to submit idea)
Robin Hood Ventures http://www.robinhoodventures.com (charges $250)
Q: What are some jobs available to those wanting to enter the venture capital world?
BS Physics, MS Electrical Engineering
How can I get a job in a NY venture capital / financial firm?
Ultimately I'd like to find tech companies to invest in and be involved in start-ups.
A: Getting into the venture capital world is really tough. It is a highly coveted job. There are two primary paths that offer the best odds. The first path is to get an MBA from a top tier business school. Your technical background will be a good complimentary fit. But, you need the MBA for the finance side. Think Harvard, Stanford, Wharton, Sloan, etc. With that, you have a decent shot at an associate (junior) position. The second path is to become a successful entrepreneur, high level executive or top technologist. This is obviously the longer term path as you need a standout track record that takes years to assemble.
Q: What topics should be covered in a venture capital presentation?
I making a slide show for a venture capital presentation and I was wondering what topic I should cover in the presentation. I already have the business plan complete and I’m trying o figure out what topics I should take from the business plan to focus on because I don’t want to babble on about irrelevant topics and bore the venture capitalist. Also keep in mind that this is an internet company
A: The most important aspects of your presentation are the market and how your product/service will benefit the target customer/be better than competitors and build repeat or viral sales. Make sure your presentation is well-thought, with a logical flow.
Finally, understand that VCs primarily invest in great management teams and/or exceptional technologists. They are more interested in great people than they are with a technology or business model from someone that doesn't have the backgound and experience to see it through to success. So, if you don't have the background, I strongly recommend you get it before pitching your idea. If you don't want to wait until you acquire the knowledge yourself, you need to recruit it into your team. Good luck.
Q: What kind of regulations and compliance does a domestic Venture Capital fund face ?
What type of regulations and compliance does a domestic (US) Venture Capital fund face when funded primarily by foreign investors from the EU. Are there specific regulations, aside from those outlined in the Investment Company Act of 1940, by either the U.S. Government or E.U. laws?
A: You are running a domestic VC fund and you are asking compliance questions on Y!A?
If yes, I'd get a compliance officer and corporate & securities structure expert in this department quick.
This is a highly complex response you are asking. I'll give you the supper skinny to start.
As a former hedge fund manager and who helped build a number of hedge funds, the structure is very similar to a VC fund. - Private Placement.
I definitely would NOT ever have a domestic US fund that is primarily funded by foreign investors. You should have an offshore fund for this group; and a separate domestic fund for only US investors.
Foreign investors are not taxed in the U.S. (they are taxed in their country). The way you have this fund structured by your question, the fund itself will be subject to U.S. tax because it is U.S. chartered. Thus, the foreign investors will be double taxed (US and in their home country).
Wherever the fund is charted, that is where the applicable law takes place. The state you are in can also have influence.
If the fund is over $25 Mil (USD), it would be SEC registered fund; less than $25 mil, state registered.
Q: What are the risks of a venture capital?
What are the risks of investing in, or being invested in, as a venture capital?
A: Venture capital is money FOR investment, not an actual METHOD of making money. A venture capitalist provides money for fledgling businesses. Recently termed private equity. You can throw your money into the pot, or be the sole provider for a venture you think will pan out. Could take several years to pan out. You can lose 100% of your money. Potential payout is big.
Q: Does anyone have a information how to find venture capital companies?
Working on family entertainment / pizza restaurant. I need venture capital. Can anyone recommend any good websites , venture capital companies to contact? Thanks!
A: Go to the link for the top 100 Venture Capital firms around.
Q: How do you start looking for Venture Capital Funding?
For an online company, located in a small rural area, that has been in business for over 5 years, how does one go about attracting venture capital funds and investors?
A: Venture Capital is just another name for private investor. There are some private investor groups but they are not well advertised. Typically a venture capitalist does not engage in the business of private investing because there is usually no or very little return on the investment. They expect to get their money back at best. That's why it is hard to find them, it's not a business. However, there are some organizations that provide business resources, councilling, consulting, advice, and these are usually staffed by successful business people. The chamber of commerce in your city and the state will provide you with local information. Often, those groups will point you in the right direction for fund raising. Another resource is to join a country club and/or a golf club where business executives tend to favor. Networking is key to many aspects of business success. To get your online business producing sales revenues you can hire a professional online marketing company and put me to work making you money. My contact information is provided in the source link below.
Q: Does anyone have a good resource for finding companies who have recently received venture capital?
I'm looking for a guide or website that will post companies who have recently received venture capital in order to target for marketing purposes. Thanks for any help you can provide!
A: Try Networkworld's Venture Capital database at http://www.networkworld.com/bg/vc3/vc.jsp
Also check this library portal site. It has several additiona links to databases.
http://library.tamu.edu/portal/site/Library/menuitem.e985aca67eb697ded0bbd0b119008a0c/?vgnextoid=97391190a237f010VgnVCM1000007800a8c0RCRD
Q: Does anybody know of good venture capital websites?
I am in the planning stage for an ambulance service and I my credit isn't good enough for an SBA loan so I am left with venture capital. Any ideas would be greatly appreciated.
A: http://www.feld.com/blog/ is a good blog on the subject. Here is a list of some others: http://andrewbfife.blogspot.com/2006/06/my-top-10-vc-bloggers.html
Don't forget about angels. They are probably a better source of capital if you have a more smallish operation.
http://www.inc.com/articles/2001/09/23461.html