SELECT YOUR LANGUAGE

Venture capital are funds provided to start-ups by venture capital firms that perceive the business to have high growth potential.  It is a subset of private equity.  To obtain venture capital, the business must be expected to grow quickly and sustain that growth overtime.  A large amount of capital can be raised through venture capital.  However, underperformers can risk losing their business.  When a venture capital firm invests in your business, they do so to gain equity in the company.  This will mean that you are giving up some level of control in your business.   Sometimes, founders gradually lose a percentage of equity in the company. 

 

Venture capital funding is not always easy to obtain, and you have to weigh the advantages and disadvantages before accepting any type of funding for your business.  Some start ups can get funding through what is referred to as an incubator, angel investors, business loans, or accelerator programs with more flexible terms than the terms required by venture capital firms.

​

Venture capital funds are gradually released as the business reaches certain milestones determined by the venture capital firm.  When you are applying for funding for your business, make sure that you know the background of the companies that you are seeking funding from and that you understand the terms and conditions of contract terms, before you agree to anything.  Venture capital can be risky for both the business owner and the venture capital firm if the business does not reach the expected return on investment.

​

To learn more about Venture Capital, watch the YouTube video:

​

​

​

By Jason Torrents