Venture Capital is capital invested by investors into a non-publicly listed business, in return for equity or shares in the entity. Venture Capital investors accept a higher degree of risk, as compared to banks and other financial institutions.
The term Venture Capital is often used interchangeably with the term Private Equity. Both these terms cover all possible stages of investment, whether it be seed or start up funding, funding for expansion or funding associated with an acquisition, whether that be a Management Buy In (MBI) or Management Buy Out (MBO).
Venture Capital investors are equity investors who are seeking above average returns for the risk that they may lose their capital.
Questions often on business owners minds are:-
These questions cannot be answered before establishing a clear strategy.
Should the strategy determine that an external investor should be brought into the business, then it is imperative that the business is made 'investor ready', in order to optimize the valuation for the business. Equally important, a list of criteria should be drawn up which clearly defines the type of investor required. Many businesses have suffered due to the involvement of an investor whose objectives were not aligned to those of the business.
The right type of investor should provide not only the injection of capital, but considerable potential value to a business in terms of resources, skills, contacts, experience, etc.
Some companies undertake the capital raising process themselves. Some are successful, many are not. It is advisable to seek professional advice, as making the wrong move can either use up valuable time and resources, or worse still, create a negative perception in the market.
Integral Capital is experienced in all type of Venture Capital raising, advisory and strategy formulation. Contact us now for a confidential discussion today, simply fill in the below form and one of our highly experienced Venture Capital experts will be in contact within two business days.
Unfortunately we do not arrange venture capital for start-up businesses.
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