What are venture capitalists looking for? What do venture investors want in an investment? If you have to ask, then you and / or your company is probably not a good candidate for them. This conversation is just in case you do not know it – it’s a reference to an old joke: when someone asks a Ferrari salesman how much it costs, the salesman responds: “If you need to ask the price, it’s because you can not afford it.”
Risk capital investors
To know: “Angel investment in a company is usually done by a group of 2 to 5 investors, both for dilution of risks and for sharing of dedication, with 1 or 2 being defined as leading investors for each business, to streamline investment process. The total investment per company is on average between R $ 200 thousand and R $ 500 thousand, up to R $ 1 million. “
I started this article with this bland joke because so many people end up saying “venture capitalist” when they really mean “angel investor” or ” bold or aggressive investor.” It is worth mentioning that venture capital is very specific and specialized. There are dozens of venture capital companies in Brazil and hundreds in the USA willing to invest in business around the world.
Getting Investment Angel and Venture Capital
To get financing with venture capital investors, the company or business must have all the qualities that angel investors desire. Legend has it that the bigger the better. Venture capitalists (also known as VC’s) focus on high returns even at high risk.
Just like most angel investors or mood investors, venture capitalists are not only looking at a healthy company, or just dividend companies, they are buying percentage ownership of companies with the intention of selling those percentages by 10, 20, 50 or more times what they originally invested.
They make money when they go out of business, and this happens when they sell their stake in the property for real money. The collection of investments that a VC is called portfolio. The companies in which you have invested are in your portfolio and a successful portfolio grows at least 10x every two or three years, and that is the real growth of your money.
What can venture capitalists do for your company?
VCs (venture capital investors) invest in companies that have real possibilities for future growth. They also typically have their own qualified and qualified management and containment teams in specific areas.
They need to be able to expand the business expansion they have acquired – which means reaching high volume sales very quickly. They have to have something different, like a “secret sauce” or “advanced technology” or expert people, who will defend them against being swallowed up by stiff competition.
Consider the size of your business to think about how much you will need to invest. Venture capitalists (also called VCs) raise funds from hundreds of millions to billions of reais to leverage businesses and businesses in some in each 3 or 5 year cycle.
Usually they went from larger organizations like insurance companies and conventional investment funds, sometimes from multinational companies and even individuals who got very wealthy because of their activities as singers and gamblers.
Money and investment for startups and innovative companies
Having an immense amount of money brings the “obligation to invest” this money into startups and promising and emerging businesses.
In venture capital, the investor is more likely to review the follow-up rounds for more money after the money initially invested. In general, these Venture Capital investors often talk about “seed rounds” as the first few hundred thousand reais, so the “A series” comes for a few million after the seed financing has generated the traction and the necessary credibility will be followed B series and C series, each round significantly increases the money.
Since the amounts invested by venture capital investors are high , the stakes are correspondingly high. So venture capital is actually more involved in the later rounds, not in the seed rounds.
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6. Online Loan and Credit Market for Investors
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8. Working Capital Financing for Entrepreneurs
If you are still not sure which funding source is right for your business, business, idea, or even do not know what options are available when it comes time to secure funding to expand your organization.