Venture capital equity means investing financial and human capital in partnership with you.
Venture capital equity is the business of investing capital, either financial or human, in partnership with your business’s management team. Investments are made into new start-up businesses, or for the expansion of an existing business. Investors prefer investing in a more established business with a history of profitability, but they are open to all businesses that have good potential.
Before a venture capital firm will consider your business for an investment they will look to see that your business has a new and unique product or service which is in high demand. If you feel that the market potential for your product would allow your business to reach $50-$100 million or more in value over the next 5 – 10 years then you are in a good market as far as venture capitalists are concerned. The goal with venture capital equity is to earn a high profit, so the VC firms have high standards for the companies they invest in.
They also want to ensure, before investing, that your business has a strong management team with entrepreneurial enthusiasm with a vision for strong growth. Proven business success among your management is a plus.
Venture capital is often invested in stages with a company. Generally, $1-2 million is invested for the startup, and then $7 million or more is provided throughout the life of your business for proper and accelerated growth and expansion.