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Venture Capital

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What is Venture Capital Fund?

Having your own business is one of the dreams and goal of the average person.
Most of us would rather be their own boss than become someone else's employee.
Unfortunately having your own business is not easy. Money is difficult to earn
and more difficult to find, well unless you are already well off.

Starting your own business may take a lot of thinking, guts and money.
Fortunately new entrepreneurs have other options in finding funds for their
business. A venture capital fund is a private equity from outside investors.

People who provide these funds are called venture capitalists. These are a
group of wealthy investors, financial institutions and investment banks that
can gather investments. They invest in new businesses that are still starting
in the industry. In return they get a portion of the equity and have a say in
the company's decisions.

Business ventures

We often hear business ventures from rich people. Most investors who have
enough money will embark on a limited partnership with a new company. This may
sound good for aspiring entrepreneurs but it is not easy. Venture capitalists
have now become more conscious and careful since the dotcom bust. They may not
mind taking the risk but they have become more selective on where to invest
their money.

Venture capitalists are usually executives from a firm. These investment
professionals are referred to as limited partners. These are a group of people
who have access to large sums of money for capital. These funds usually come
from private and state pension funds, foundations, financial endowments,
investment companies and other institutions.

Investors are usually grouped according to their interest. Most venture
capitalists invest on starting companies. These companies are usually
high-technology businesses such as electronics, computers, research and
development. These funds usually last for ten years. The general partners or
VCs receive a 2% management fee every year and require 20% of the net profits.
They invest in more than one starting company for more returns in the long run.

Venture capitalists are very selective and most of the time has strict
requirements. Apart from that they also have a say in the company's decisions
which may not be good for the company. Venture capitalists are known to invest
a lot of money in a short amount of time.

They may invest in advertising your company for magazines but are not exactly
suited for your type of customers. Companies end up spending money at a faster
rate before they can learn how to do it and earn positive returns in the
process.

For other entrepreneurs who have a hard time getting their business plans
approved they may turn to angel investors. Angel investors are individuals who
also have access to large amount of capital and are willing to invest money on
highly speculative start up companies. These businesses usually don't have a
solid proof for their technology or have a great potential for its product or
services at the start.

If you really need a venture capitalist fund make sure that you will pick a
general partner that will work with you not just for the money. Venture
capitalists can kick out the founders out of the way and bring in their trained
CEOs. At the end of the day it is still a business that you can either work for
or have it taken from you.

Venture Capital -- Things that You Should Know

"Venture capital" is a term that is often heard in business discussions. But
more often than not, the more common belief is that this is rather complicated
and difficult to understand, especially for those who are new in the game of
business. For entrepreneurs and anyone who may be interested to get into
business, it is important to understand what this is all about.

Venture capitalists and firms are composed of people and firms that have pooled
in their resources in order to invest in businesses, whether to start-up
financing or for company expansion, for the purpose of earning profits within a
short period of 3-7 years. The goal is to increase the company's value so as to
yield more profit at its exit, which may be an initial public offering or what
is commonly known as IPO. Other exits include an investor's buyout, a merger,
or an acquisition.

These firms concentrate on a certain field or area. It is therefore important
that you know what these areas are. This is called investment criteria. If you
have a specific area in mind which does not match that of the firm, there are
many other firms that you can find. You just have to know where to look.

The web is one source of venture capital firms. Make a search on the internet.
Some sites are helpful enough to provide listings of these firms as well as
other tips such as how to draft your proposal, how to raise venture capital,
among others.

When you've found the investor to match, it is then time to draft your
proposal. It should be truthful, direct and thorough. You might want to ask a
professional to check on your proposal before submitting it. Your proposal
should leave a mark in the minds of the capitalists, since they have to go
through tons of them. An estimate of 1 in every 400 proposals gets approved, so
it is imperative that your proposal be impressive.

When we talk of profit and earnings, we're not talking of a few thousand
dollars in a year. These firms seek a return of up to five, even ten, times the
initial investment, not to mention the management fees and other fees that they
require.

This explains why these firms tend to take the reins of the company. That is
why it is important that you organize a solid management team that knows what
they're doing and at the same time is able to handle the pressure from these
capitalists. But while it helps if you appear to manage the company well, it is
still important to listen and follow the strategies that these firms provide.
Aside from being tried and tested policies, following their decisions will also
benefit you in the long run should you need more capital.

Venture capital is a wise investment alternative for both entrepreneurs and
capitalists. You and the investment firm have a common goal, and that is to
receive as much profit as possible after a short period of time.

If this is not what you want or does not seem feasible to you, then there are
other financing options that you can avail of. The important thing is to weigh
all pros and cons before deciding anything.

Venture Capital: The Basics

A lot us have ideas, but the real challenge is making them a reality. There are
a lot of opportunities in the business industry but the real challenge is making
out. Earning money is as difficult as finding. No one really want to be a
cubicle drone but without any capital most of us become regular employees.

There are ways to start a business. If you have a great idea that has a big
potential, there are ways to access funds for your business. Venture capital
funds are one of the sources of seed capital for your start up company.

Venture capitalists invest on start up companies with big potential and high
growth. These are usually high technology companies that may lead returns in
the long run. The downside of this is the venture capitalists get a share of
your company and have say on the company's decisions. A person who has always
dreamt of becoming their own business may find this a tad uncomfortable.

The low down on Venture capital

There are some venture capitalists that provide financial services to start up
companies. These are usually companies that are entirely new, with mostly an
idea and a business plan in their hands. Venture capitalists are willing to
make risky investments on businesses that banks loans and capital markets are
afraid to make.

Companies that they invest in are usually high technology business such as
computer and electronics. They are also interested in development and research.

Venture capitalists are general partners that offer limited partnership to a
company. These general partners are usually made up of executives from a
financial firm. They have the ability to pool in a large amount of capital.
These funds are usually taken from pension, foundations, insurance companies,
financial endowments and financial institutions.

This may seem a very good idea for a starting company but there is downside to
this. In the business world nothing is free and general partners require 20% of
the net profit of the company. They also need a 2% management fee every year.

It's also not easy to attract venture capitalists. They often have strict
requirements. They will no invest on companies that don't have proof of their
technology. They may agree to meet up with you but that does not mean you're
already in good terms. Most of time 999 business plans get rejected out of
1000. They can reject you for a lot of things that may even seem trivial at the
moment. The hurdles don't stop there.

General partners may help your company to jumpstart and expand. But they won't
just let you make the decisions when they have invested a lot of money on your
company.

In some instances this may lead to problems especially when general partners
only care about making money for themselves. They may invest in advertising but
not in the right places for your customers. Some of them like to spend too much
money and the sudden growth is too fast.

Before you find yourself a venture capitalist make sure you are aware of their
impact in your company. A venture capital fund may seem convenient at that time
but you should always look ten steps ahead. Look for a general partner that will
help your company grow not just add weight to their wallets.

What the Definition of Venture Capital Won't Tell You

Venture capital can be a rather complicated set-up for beginners in the
business world. While there may be lots of resources available on the topic,
these articles are sometimes too technical for the ordinary person.

The definition of venture capital, in simple terms, is investment money
provided by professional capitalists and venture capital firms to promising
companies in the hope that it will make more money after a few years. Aside
from its definition, here are some things to discuss about this subject.

Venture fund has a relatively short lifespan. The goal, then, is to maximize
profit within a short time span. These capitalists and investors have developed
strategies and business plans that are "proven" to yield results, but this is
not the case always. Remember that their aim is a return of investment in a
short time and not a lifelong business.

Aside from the profits that they seek to have, they also charge certain fees to
pay their management staff. These fees are also taken out of the fund, making it
run out sooner than expected.

As a general rule, only 10% of the investments become successful. If that were
the case, perhaps you'd wonder why these companies continue to operate. Since
these firms have tons of money, they've somehow managed to branch out their
investments in several companies. The key to success, then, is to make more
good investments to offset the losses. So when everything is taken into
consideration, they end up gaining more than they've invested.

If you consider this option, be prepared to lose control over your company for
a couple of years. Because these investors and firms have spent big bucks to
help you put up your company, they also have a say on how things get done.
We're talking of major stakes here, not just a couple of hundred dollars that
you borrowed from a friend.

They usually assign somebody to sit as members of the board to take part and
know the decisions that you make as CEO of the company. At the same time, they
report to the firm what they think of how you run things, which can be crucial
should you need additional capital later on.

Venture capital is one way to get into business with minimal capital. But
remember that together with it are several requirements that you must comply
with. These firms have developed plans which may have proved to be effective
for past businesses.

But while it may have achieved success at one instance, it is not a guarantee
that the same will happen to your business. There is therefore the possibility
of failure. While it may be difficult and the stakes are rather high, the gains
that you may receive later are sure to outweigh the demands and difficulties
that you face at present.

Here's hoping that this article made you understand the definition of venture
capital better. To have more information, it is best to seek help from a
professional. Ask a financial expert on the pros and cons of venture capital
and how it can be availed.

He can also help prepare your business proposal to make it more attractive to
capitalists and angel investors. There are a few websites which provide this
type of service.

Venture Capital and Its Characteristics

More businessmen are getting into venture capital. Whether as entrepreneurs or
capitalists themselves, more people are getting into it because of the promise
of fast, easy money in a relatively short time. While many may attest to the
financial security that the scheme brought, there are also just as many
unfortunate stories that have circulated as well. Here are some characteristics
of venture capital that any businessman must know.

Venture capital firms are made up of individual investors or corporations.
Sometimes the participants are institutional investors like insurance
companies, foundations and pension funds. Aside from these firms, there is also
what is called as angel investors. These are individuals or a smaller group of
investors that operate the same way as venture capital firms. They all function
the same way, and that is to fund small and starting businesses, ending in a
buyout, merger or IPO.

Finding start up capital is not easy. First, you need to fit in the investment
criteria that these firms provide. There are several of them listed in
directories or the internet. The line of business that you have in mind should
match that of the firm.

Otherwise, there is lesser chance for your proposal to be approved. Also, you
need to have a business proposal that would persuade the firm. It must be
concise, well-written and well-researched. With the hundreds of proposals that
they get, it is crucial that yours should impress them.

Venture capital investments are different from venture capital loans. For the
latter, the risk is borne by the investor and not by the investment firm. The
entrepreneur must repay the amount plus interest, regardless of the company's
success or failure. For venture capital investment, it is the firm that bears
the risk. This explains why more people opt for venture capital investments
than loans.

Since the firm bears the risk, it is therefore the one entitled to a major part
of the profits. These investors seek maximum gain at the shortest period
possible. They're eyeing on at least a 100%, even 700%, return of their
investment. That is why they tend to have more control over the company than
its entrepreneur. If you have problems with relinquishing control over the
company, then this scheme is definitely not for you.

The good news, though, is that these capitalists are experts in the business
field. Their policies and strategies have already been tried and tested. Should
any of their plans fail, they are sure to have back-up or alternative plan. In
other words, these people know more than the new entrepreneur and can help a
great deal in the management of the company.

Knowing the characteristics of venture capital may prove to be useful to any
businessman. With this simple guide, you will have a glimpse of what it's like
and what to expect from it. This should be the first question that any aspiring
entrepreneur should ask: is this right for my business? Venture capital is not
fit for everyone.

If you do not fully understand what it is and how it works, then you might as
well not consider it -- yet. Learn more about the topic by reading more
articles and acquiring more information. If it has worked for others, then
there is no reason why it shouldn't work for you too.

Venture Capital -- Knowing Your Funding Options

Entrepreneurs and business experts have defined venture capital as a financing
style between a capitalist and entrepreneur with a common goal of a handsome
return in a short period of time, maybe 3 to 5 years. But while there are
several resources on the definition and characteristics of this topic, few have
actually discussed the options that this kind of business set-up has.

Before taking the plunge, know what these options are and how they can be
applied to your current business plan.

The funding option depends on the stage of the company's progress. Investment
firms can invest from $50,000 up to $20 Million. If the company is still at its
earliest stage, where a concept or invention is still to be developed or proved,
the option is called seed financing. Here investment is spent on marketing and
product development. Product ingenuity and market research are the areas being
focused.

When the company has already developed its product and marketing strategy but
needs money for the actual production and initial marketing, the funding option
is called start-up financing. This is the common option for new entrepreneurs
and inventors. Here funds are spent for the production and initial marketing.
Amounts can range from $50,000 to $1 Million.

Sometimes a company already has its products and may have initially introduced
them to the market, but receives little or no revenue at all. In this case, the
entrepreneur may need financial assistance at this stage, called the first or
early stage. The amount usually ranges from $500,000 up to $15 Million,
depending on the extent of the changes that need to be made. It could be that
the product needs to be revised or developed to make it more saleable, or it
can be a mere repackaging or change in advertising strategy.

The next option is called the second or later stage. Here the company has its
products and may have received revenues, and has the potential of making it big
in the near future, but for some reason has no funds at hand. It could be that
there are some loans that need to be paid, or other financial schemes that need
to be complied with. That is why venture capital firms invest from $2-15 Million
to help the company.

Some profitable companies want to expand, but does not want to put in more
capital out of their own money. Their goal is not to keep the company for many
years but for it to quickly grow in order to make an IPO within a few months,
say 3-18 months. This option is called the third or mezzanine stage. Amounts
range from $2 Million to $20 Million.

Similarly, this next option needs an investment before an IPO, but the time
frame is within 3-12 months. This is called the bridge. Investment is also
between $2 Million to $20 Million.

Remember that there is a specific option for each stage that your company has.
The key is to know what options to use. Similarly, you must know where to find
these venture capital firms. You must also develop a concise but comprehensive
business proposal to present to them. Lastly, keep in mind that venture capital
is not the end-all but just the beginning of more challenging things to come.

What do Venture Capitalists Want?

Venture capitalists come across a lot of companies that need funding everyday.
Harsh as it may seem only 10% of the applicants will receive funding for their
business. Each firm has their standards to uphold to be able to diversify their
portfolio.

To be able to stay ahead of the competition you must be able to communicate
what your company is all about and at the same sell it by giving what they
want. There are many private equity firms in the market but even those that are
willing support small business what to know that you are worth what they are
paying for.

To be able to have a competitive edge against other applicants, ask yourself
this: "what do venture capitalists want? By putting yourself in the shoes of an
investor you will have an idea of what convinces them to provide funding for an
emerging company. Apart from a topnotch and comprehensive business plan you
also need to make a good impression to your investors.

Search for information on private equity firms and venture capitalists that
might be interested in your business. There is a wide selection of venture
capitalists that invest in different types of business.

What do investors want?

Any investor would want to know who they are dealing with. You and your
management team's background will be one of their focuses. A highly successful
business is made up of a competent and ambitious management. After all, these
are the people who will be spending their money. Your and your management
should be able to cope up with the changes and demands of your business. You
must understand the nature of your business very well, including the challenges
you will face in the future.

Investors want to know that the business they are going to invest in has an
innovative idea with a great potential for growth. The target market of your
business must be substantial and the same time rapidly growing. Your business
must have a valuable product that has the potential for positive returns in the
long run. Apart from that you must also provide them credible figures. This
includes the changes that may occur when the economy shifts.

They want to know how you will spend the money and how will they earn. As an
investor, you want to be sure that you're investing in the right place. They
want to know how you are going to use the funds provided for growth and
positive returns. They want to know when the pay day is and how long it's going
to take. You have to convince them that they will earn money as soon as
possible. They also want to know how long you're going to need the funds and
how much your business is going to need.

These are things that you have to consider when presenting your business. In
reality you are actually selling your product like a sale pitch. In normal
cases there will always be more rejects than approvals. Even Angel investors
have their own standards to keep. Your idea must not be just be brilliant but
also profitable.

In the end the investor will always want to know what they are going to get
with a good exit strategy for them. The gift of gab along with good business
plan is the key in getting your investor's attention.

Sources of Venture Capital News

Venture capital is one industry that has been around for the past 60 years or
so. However, just like any industry, it continues to evolve and change. Much of
its development can be attributed to the internet. Because of it, things are
faster and easier. Any updates on venture capital and any venture capital news
are readily available to the rest of the world through the internet.

Aside from the internet, there are other sources of venture capital news. Old,
traditional sources such as newspapers and magazines continue to provide the
necessary updates and information that venture capitalists and entrepreneurs
need. These are also good sources of legal updates in the field of venture
capital.

But any information that we can find in magazines and newspapers can also be
found in the internet. Aside from the printed materials in circulation, they
also operate websites where the articles are posted.

Newsletters and emails are also sources of news. Subscription to a specific
site sometimes includes subscription to their daily or weekly newsletters. Here
service providers help entrepreneurs by providing them with useful articles and
practical information. Contributions from business experts and capitalists can
also be found in these newsletters.

Discussion groups and forums are also good venues to post updates. Here you are
able to exchange ideas and interact with fellow entrepreneurs like you. They can
provide you with tips in the different aspects of venture capital, from raising
venture capital to drafting of proposals to exit strategies.

Articles on venture capital are not limited to business pages or sites. There
are sites which are specifically dedicated to venture capital. These sites post
news and provide video streaming as well. News articles are sometimes classified
into more specific topics such as buyout news, industry news, fund news and
transition news.

This makes it easier for the reader to choose which articles
to read. So if you are interested in buyouts only, for example, then you don't
have to go through all articles to find the news that you want. The articles
are also arranged by date, also to make it more accessible.

Because the internet is worldwide in scope, these articles can therefore be
accessed by practically everyone anywhere, in the same way that we can read
news and updates in their countries. This goes to show that venture capital is
a worldwide phenomenon. In the US alone, close to $29.9 Billion was used for
venture capital investment in 2007.

Also, capitalists are not looking at the US markets only but have considered
funding companies and businesses in China, India and other developing countries
in Asia. This is good news for these countries with vast manpower resources but
limited funding.

Through these articles, you become informed of the latest trends in VC. Last
year, the trend was towards early stage investing. It was estimated that 35% of
VC investments will go to seed and early stage deals. On the other hand,
expansion-stage funding decreased.

There are some really good websites which provide venture capital news and
more. Aside from news, they also provide listings of venture capital firms and
the companies that they helped fund.

Find these websites and bookmark them. For young entrepreneurs, these sites are
useful for them to know more about venture capital.

Kinds of Venture Capital Jobs

Venture capital is one fast-expanding field in the industry. Every year, there
is an increase in the number of venture capital firms not only within the
country but also in other parts of the world.

Taken individually, these firms have likewise expanded by providing their
services not only within the state or country but even overseas. With the rise
of venture capital firms is the rise of venture capital jobs.

There are only a few capitalists in a firm, so it is impossible for them to do
everything. As they incorporate to make a firm, these capitalists are called
partners, which may be of two types. One type is called a general partner or
venture capitalist. These are the capitalists that we see and are known as
such. They are executives who may have been former chief executives or senior
executives in their previous companies.

The investors are called limited partners. They may be individuals or
institutions such as pension fund, foundations and other insurance companies.
These limited partners may or may not be known by the public.

These capitalists receive compensation in the form of annual management fee,
which is 2% of invested capital, and carried interest, which is 20% of net
profits.

What other jobs are available in venture capital firms? It is a given that
these jobs are business related, so an educational background in business or
finance is necessary.

There is therefore the need of accountants and financial analysts. These are
the people who screen proposals and recommend approval of qualified ones. Some
also work as researchers, focusing on the trends in a specific field or
industry. There are also those who work on products and process development. In
general, these employees are called associates. After working for a couple of
years, they may be promoted to senior associate position, and so on.

There are others who work as financial advisers and consultants. These are the
people who work on a project basis. Their services are sought only when the
need arises. They are usually people who are financial experts with respect to
the industry that the firm hopes to work on. They also have an extensive
background on the economic and financial status of the industry.

The firm may also employ managers. These are the executives who would manage
the affairs of a new company that the firm funded. Usually they form part of
the management team or board of directors. These managers, together with the
management team, run things around the company. They see to it that the company
follows the procedure and policies that the firm has imposed, and give remarks
and recommendation on how things can be improved.

There is also what we call as entrepreneur-in-residence or venture partners.
Their responsibility is in bringing in deals for the firm. They are employed
for a specific temporary period, usually as the firm begins to operate.

Capitalists are not the only people in a venture capital firm. There are still
others working to make it an efficient, well-organized entity. So if you want
to pursue a career in venture capital, there are many venture capital jobs
available for you.

You can search internet listings and classified ads for any vacancies. Now is
the right time for you to join this booming industry.

How and Where to Find Venture Capital Insurance

Venture capital insurance is one topic which may seem complicated to most
people. But once you try to understand how the system works, you'd soon
discover that the topic is not that difficult to grasp. This explains why more
and more new entrepreneurs have chosen this financing alternative than the more
common ones like bank loans and mortgages. Through books and the internet, you
will learn more about venture capital.

Venture capital is provided by venture capital firms to start up or build small
businesses. The idea is to provide funding and control the company operations in
order for the company to grow within a couple of years, and for the firm to
receive more than what it has invested. That is why most firms focus on
high-return industries such as those related to technology and internet
businesses.

You can find some listings of venture capital firms in your area. Or it can be
that someone you know also knows some people working in these firms. Referrals
or recommendation from your friend will give you an edge for approval of your
proposal.

Do not submit your proposal to any firm available. That would only waste your
time and energy. It is important that your proposal be in the same field as the
investment criteria of the firm that you've chosen, so do some research
beforehand. Also, this firm must also be compatible with your company's
financial needs as well as growth strategies.

There are ways to submit your proposal, the most common of which is through
email. In doing so, make sure that you personalize the correspondence. Know
where and to whom the email be sent. Nothing can be more distasteful than mass
emails. Another way is by posting them in the internet. There are legitimate
sites where you can post funding requests. Some capitalists find it more
convenient to browse through these websites rather than receiving massive
emails everyday.

Avoid submitting them in trade shows. For one, you are required to pay before
you can attend. Also, the capitalists that attend these shows are second-rate
ones, not the type of businessmen which you would want to deal with.

Since these industries have made extensive research in their field of choice,
and since they have the necessary experience in managing related companies, it
is therefore important that you draft your proposal well. Make a thorough
research.

Know the product that you wish to sell and the market that you wish to enter.
Your proposal should be short yet complete. More importantly, it should be
truthful. These investors can easily detect any false claims or mere hype in
the proposal.

There are some softwares available that will guide you through the drafting
process. There are also some websites which provide for outlines that you can
follow. If possible, you must seek help from a professional to check what
you've drafted before submitting them.

Finding venture capital insurance is one thing. Working with venture capital
funds is another story. It takes a lot of hard work and perseverance in order
for one to be successful in the business that you wish to establish.

Lastly, there is no assurance of success or profit, not even for the venture
capital firms. But of course, if you hit the jackpot, the rewards can also be
high.

How to Raise Venture Capital Funding

For one reason or another, you've considered putting up your own business using
venture capital. It could be that you don't have enough financial resources or
you don't want to risk your own money. Perhaps you've heard of some successful
entrepreneurs and wished to follow their footsteps.

As you search for more information on this, you'll soon find that the first
important aspect in venture capital is raising it. Here are some tips on how to
raise venture capital funding.

The first step is in understanding how these capitalists and investor firms
think. Basically, their goal is the same as yours -- to make money. The only
difference is they've spent most of their time in research -- studying which
businesses have the potential of growing in a couple of years. That is why in
the past few years, investments are geared towards technology and biotechnology
fields, as they are the fields with highest potential.

Sometimes they operate within a certain field or geographical area, so you must
know the investment firms in your locality. Thus, there's the need for you to
make a research on the firms within your state as well as their investment
criteria. Know what they want and give it to them. If your business proposal is
not in line with these businesses or does not meet their investment criteria,
then make sure that your proposal is impressive enough to catch their eye.

This brings us to the next step -- preparation of your business proposal. Since
these firms receive tons of proposals, it is important your proposal be brief
but complete. The opportunity must be well defined and clearly explained. This
is only possible if you did your homework well. Know the market that you wish
to penetrate as well as your competitors and their strategies.

Make sure to ask help from experts and professionals on how to draft these
proposals. While it may be an added cost, the chances of your proposal getting
approved will also greatly increase if you seek help. This is very important
specially if you have no business background.

You may know your business well and have made a thorough research, but you
haven't translated it into a clear, reasonable proposal. Have someone check
your draft before submitting it. Lastly, check your proposal for any errors in
typo and grammar. The figures must also be accurate.

After you've submitted your proposal and have caught the firm's attention, it
is time to put up a management team. Keep in mind that with venture capital,
you lose some degree of control over the company. These investment firms would
also field in some of its people to sit in the board or be a part of the
management team. It is therefore important that your management team be strong
enough to handle the pressures from the investment firm.

If you're thinking of expanding your existing business or putting up a new one,
venture capital funding is a good alternative. But before deciding on it, know
the options. Read business books and articles on the topic. Then study your
business plan and see if venture capital is applicable.

If you think that this is the only way to go, then go for it. Just make sure
that you take all precautionary measures and know all alternative strategies to
your business plan.




Venture Capital Fund: A Viable Risk?

Venture capital fund is considered one of the financing options of a business.
A venture capital firm will give a business its much needed funds and first
class resources to become an industry player. Seeking out venture capitalists
may play a huge role for a company who needs to needs rapid growth and success.
Unfortunately even though they may provide a good opportunity there are also
disadvantages in acquiring venture capital fund.

Finding potential investors have side effects before and after they approve
your business plan. The competition is very stiff. Investors do not care about
an entrepreneur's hopes and dreams. They care about financial projections and
earning more money than they invested in a short period of time. In exchange
for the money your need; the investors will bite a chunk out of your business
and control.

The grass isn't entirely greener on the other side.

A private equity firm may give you the cash that you need to boost up your
business but nothing is free. After all, this is business and money dictates
everything. Venture capitalists already have an effect on your business at the
start of your application.

Large and established venture capital firms only approve less than 10% of the
business plans they come across. Established businesses with a good track
record and posses a huge potential are the only ones who have the chance of
getting approved.

Private equity firms also invest in specific industries, technologies and
geographical area. There are different types of firms but large ones are
interested in high technology businesses. You must find a firm that will suit
your business and more importantly a product innovative enough to cause
interest.

Raising equity to finance your business is time consuming, demanding and
costly. Investors will also probe you and your business. During your
presentation they will be very critical of your historical financial data,
future projections and management team. They will also evaluate your business'
investment potential.

Once they have decided to invest in your business, they will present their term
sheet. This will contain the investment deal including the terms and conditions
of the investor. Negotiations will follow between you and the venture capital
firm. The most important aspect in this negotiation is the valuation of the
business.

This will determine the amount of equity that you will give in exchange for the
fund. Investors will require 30% to 40% of equity from your business. This will
enable them to exercise their influence and gain a say in your company's
decisions.

Due to this the ownership of the company will be diluted. You also have to
provide time to be able to provide information to the investors who will be
monitoring your company. You also have to adhere to legal and regulatory issues.

Investors aim to earn money three to five times more than they invested in five
years. They will accomplish this by selling their equity or to public stock
markets.

All in all using venture capital as a financial option comes with risks. If you
are an entrepreneur who doesn't mind sacrificing a chunk of your business for
rapid success then this option suits you.

Be reminded however that securing a venture capital is an arduous process even
after you have attained it. Be ready for some additional players in the table.

Venture Capital Cycle -- How Does it Go?

Venture capital is something that most aspiring entrepreneurs are eyeing. This
is because the deal is rather simple -- you submit the proposal, firms accept
the deal and provide funds to finance it. Compared to bank loans which you need
to repay, venture capital is paid by the firms and investors.

But while it may seem easy, the process may be a little complicated as you go
along. Here is a simple discussion on venture capital cycle and how it works.

The cycle is basically made up of three stages: raising of funds, investment of
such funds, and exit.

Before you can close a venture capital deal, you must first find a venture
capital firm. Research on the firms available, and see which industries they
are most inclined to. Your proposal must fit their investment criteria,
otherwise, everything would just be a waste of time. The usual fields are
biotech and greentech. If these are the types of businesses that you wish to
enter into, then you are in luck.

The next step is to develop a business proposal. This you will submit to the
firm. It is therefore important that the proposal is short but complete and
well-researched. At this stage you may seek help from professionals and
consultants. Make sure that there are no errors in it. When it is your time to
present, be sure to have studied your proposal and the industry where it
belongs in order for you to be able to answer questions that capitalists and
managers may ask.

Granting that you've submitted a good proposal and was given the 1:400 shot at
landing a deal, you have now completed the first stage of the cycle. The next
stage is in the investment of such funds.

During presentation, you will be required to present a management team. It is
important that this team be composed of competent people who are knowledgeable
of the field or industry that you propose to enter. Aside from your own
management team, the firm shall appoint managers to help, even impose, policies
and decisions in the company. Since these firms have high stakes in the
company's success, it is only logical that they interfere with the
decision-making process and in effect, have more control over the company than
its owner.

During exit, the funds are liquidated and returned to the investors. This
usually happens within 3-5 years, even sooner, if the return of investment is
very high. An exit may take different forms, such as merger and acquisition,
buyout and initial public offering or IPO. While others may have succeeded in
earning more than 500% of their initial investment, there are likewise others
who failed. Also, a big chunk of the funds goes to the expenses of the firm,
such as management fees, consultation fees, and other fees.

Understanding venture capital cycle will make you better, more efficient
entrepreneurs. That is why it is important to do some research, read articles,
even enroll in a venture capital course. Furthermore, investigate on the trends
of the industry that you want to enter into.

No entrepreneur became successful just by mere luck or chance. Any entrepreneur
will tell you that you need to study and understand what you're doing in order
for you to be successful.

The Advantages of Taking Venture Capital Courses

When one speaks of venture capital, what usually comes to mind is its
difficulty. Most people think that in order to be a capitalist, you need to be
a graduate of some master's degree. Surprisingly, you don't need to do so.
There are venture capital courses that you can take in order for you to become
a good capitalist or entrepreneur, if you're looking at the other side of the
fence.

Now you may ask what good shall this give you, when there are tons of resources
that you can find if you want to learn about venture capital. The internet, for
one, has hundreds of websites that "teach" you, not to mention the online
courses that other sites offer. Also, enrolling in these courses would entail
added costs and expenses.

While there may be disadvantages, the benefits that the courses provide are
sure to outweigh them. Here are some of them.

One advantage that these courses give is the opportunity to ask questions
directly to the instructor. If you are not taking these classes but are merely
reading books or articles about it, you may have questions that need to be
answered for you to understand better. Taking the course will give you that
opportunity.

Another advantage of taking this course is the practical knowledge that venture
capitalists may impart. Some of the instructors are capitalists themselves, so
there is the opportunity of hearing their experiences first hand. This will
help the student understand the key issues as well as appreciate the policies
and decisions made by companies along the way.

Sitting in a class with people having the same interest as yours is also an
effective way to learn better. You learn more as you interact with other people
than when you sit alone at home, reading or browsing through a website. You also
learn from their experiences as they share them to you.

Also, these courses provide handouts and suggested readings that prove to be
helpful to budding entrepreneurs. Since the instructors are the ones who
compiled and made these notes, then you are assured that these handouts will
provide useful and effective information on the subject. Also, with the many
books available on the topic, it is impossible for you to read all of them in a
short span of time. With the suggested books and readings, you only get to read
the best ones available.

Since these courses require you to take exams or to submit reports and case
write-ups, then you are able to evaluate your own learning. Here you are able
to determine the areas that you need to work on, and those that you are good
at. This is not possible if you are not enrolled in a course.

If you are seriously considering a career or to put up a company using venture
capital, then it is best to formally enroll in a course. If the college or
university in your locality offers MBA or Law courses, chances are, they also
offer venture capital courses. You can browse through their websites or visit
them to inquire.

Taking this course is just the first step towards developing the entrepreneur
or capitalist in you. The next step is applying what you've learned in real
life. After all, that's where the real battle is.

What is a Venture Capital Course?

Venture capital is one field that's making waves for almost two decades now.
What most of us don't know is that the system has been around for over 60
years. The promise of profit within a few years, not to mention the enticing
ads and success stories posted in the internet, is something that lures
aspiring entrepreneurs into it. While there may be resources readily available,
others still opt to take a venture capital course.

There are many kinds of venture capital courses. Schools within the US and in
far countries like the UK and India offer them. Course titles and subjects
vary, although their outlines are similar and there are common subjects.

Aside from those offered in schools, there are some courses that may be taken
online or through correspondence. With the invention of the internet, these
online courses have evolved and developed into useful learning curriculums. Now
you may reach your professor through email, and he may send his assignments and
exams in the same manner. Or you can log in a specific website and see new
postings from your instructor.

Most of these courses are short-termed ones, ranging from three days up to a
week. Others may last for a few months, but these courses are coupled with
other topics such as real estate and private equity investment.

Aside from the main subjects offered, some courses recommend and suggest
electives that may be taken together with the course subjects. There are other
courses which require you to take some subjects before you can enroll in the
course. These pre-requisite subjects are usually related to math, statistics
and corporate finance.

Fees and other expenses may vary depending on the school and extent of handouts
and notes that they provide. In the same way, course requirements also differ
among these schools. Others have a classroom course type, complete with
lectures, case analysis and discussion, while others have a one-on-one
approach. Some courses require submission of reports and write-ups, aside from
the exams that you need to take.

The typical course starts with the introduction of venture capital, origin and
development of the industry, and its types. It also includes the drafting of
business plans and how to assess them. Aside from these topics, there shall
also be discussions on risk analysis, returns, management team assessment and
exit planning.

Some courses offer topics on private equity investment, a subject that is
closely related to venture capital. From sourcing to realizing value during the
exit stage, these lessons are helpful to better understand its relation to
venture capital. Aside from these, they also include tips on analyzing deals,
negotiating and pricing equity stocks, and creating value. Another topic that
is offered together with venture capital is real estate.

Taking a venture capital course is an effective way of learning more about the
subject. If you are keen on putting up your own company through venture
capital, or if you want to become a capitalist yourself, then taking a course
is the best way for you to go. Know what there is to know while taking the
course.

But remember that learning does not stop as the course ends. As you apply what
you've learned, you continue to enrich yourself with real-life lessons that the
course does not provide.

Pitfalls to Avoid in Applying for a Venture Capital

Most entrepreneurs know what they have to do when searching for venture
capital. But there also common mistakes that you have to avoid when presenting
your business. An applicant can be rejected for a number of things.

Most venture capitalists are only required to approve a certain number of
business plans they come across everyday. Your business must have a competitive
edge over others that will get the attention of the investors.

You have prepared all of your legal documents and practiced your pitch a
thousand times only to get rejected. At some point, you won't even know why you
got rejected. Don't wonder if applicants get rejected over something trivial. To
be able to increase your chances of getting approved you must know what to do
and the common pitfalls to avoid when applying for a venture capital.

Do not want

Don't be too technical. Investors pay more attention to number and figures
because they understand them better. Although this may give the impression that
you know your business like the back of your hand, the investors may not
understand you. Your presentation should be able to communicate well with your
audience.

Don't give false hopes. Overly optimistic projections may ruin your
credibility. Investors rely on credible financial projections not expectations.
Unless your assumptions on future earnings are back up by credible sources,
don't mind bringing them up. It's better to present realistic figures that can
be achieved by the business.

Do not provide incomplete financial information. You must present both past and
projected financial data. Historical financial information informs your
investors what the company has accomplished and communicates future
projections. You will need balance sheets, income and cash flow statements.

Sales are not the solution to all problems. Investors are looking for
businesses that have potential for long term returns. Earning in small profits
that can be collected in a timely basis proves a better survival strategy.
Earning large amounts of profits while loosing money at the same time will ruin
your business.

Concealing problems of the business is not a good idea. Investors also
understand that all business has problems. State the whole story and inform
them how you will manage and solve it in the future. Owing up to past and
existing problems is better than hiding them. As long as you can present a
solution your investors will understand.

Low price leverage. The low price strategy can only be achieved by one leader
in an industry. It's not a good sign to your investors if you are relying on a
low price rather than the quality of your product or service. Wal-mart is one
the few who can manage to capitalize on this strategy.

Overconfidence in your product is also not a good idea. Your idea maybe unique
but you should always remember that the possibility of a competition will
always be there. Every business profits from a need and any smart entrepreneur
knows that. Your ideas may different but looking at the whole picture you may
also be focusing on a need that others are also addressing.

State the facts in print. All entrepreneurs have a clear vision of what their
business is but not all of them are good in putting them in print. It's
important to be the author of your own business plan than get outside help that
may not be bale to capture your thoughts.

Choosing the Best Venture Capital Consultant

Finding a venture capital firm can be a taxing job. Imagine having to go
through the profiles of these firms to determine if your proposed company fits
their investment criteria, and then having to send your proposal to each of
them. This will definitely consume your time and energy, as well as financial
resources, without guarantee of favorable results. This explains the need for
venture capital consultants.

What exactly do these consultants do? Basically their function is to find a
venture capital firm to fund a start up company. But before this, he must know
the kind of business that you want to put up. In this way, he will immediately
know which firms to contact once you've given him your proposal.

This is done by reading the business proposal. You may have written the
proposal yourself, or he may draft the proposal for you, for a certain fee. It
is advised though that prior to contacting a consultant, your business plan
must already be finished.

Aside from the added expense, it is important that you know beforehand what you
really want so that the consultant can have something to work on. On the other
hand, if the consultant makes the proposal for you, then you are assured that
the proposal is attractive, brief and complete, increasing the chances for it
to be approved.

During this stage, he must take time to know what you want. He must continue to
ask questions not only about financing options but also with other aspects such
as system of management and exit planning. A good consultant is someone
knowledgeable of the different investment criteria as well as management styles
and policies of these venture capital firms.

Next, he must know the exact type of venture capital firm that you want to work
with. You may want to work with a firm, an angel investor, or investment banker.
He must also be able to give suggestions as to which type of firm would best
suit the company or business that you wish to put up.

Some online consultancy firms provide all the necessary help that you will
need. They can provide you with checklists, reports and sample business
proposals. More importantly, they will help you in your funding application by
posting them in their website.

The downside of hiring a consultant is, obviously, the cost. Consultancy firms
can charge up to $2,500 for mere consultancy services. Aside from this, there
may be other fees that they will charge such as retainer fees and other direct
expenses. Some of these companies charge between $250-350 an hour.

Be wary of consultants who tend to give you sweet, enticing words. Chances are,
they're all hype and can't deliver. Unfortunately, because of the increase of
popularity of venture capital financing, many of them have abounded. So take
extra care in choosing your consultant. Do some investigation. Instead of
choosing freelancing consultants, maybe you can choose one who is employed by a
legitimate consultancy firm.

A good venture capital consultant saves your time, money and energy. Choose the
best one that you can find. You can find some of the through the internet or by
word of mouth.

Some entrepreneurs can give you names of consultants or consultancy firms that
offer this type of service.

What You Need to Apply for a Venture Capital

Many of us know that we need money to invest in a business. Most of us also
know that we have the option to seek for outside investors or venture
capitalists. The problem is each one of us has an idea and would like to turn
into reality.

But for someone who is not well versed in the streets of business we don't know
how to go about it. When you are applying for a venture capital fund or grant
you need a comprehensive business plan.

Applying and convincing investors are no easy feat. They are going invest money
in your business so it's natural that they want to be sure that it will profit
them in the long run. Screening can be very tough and competitive. Venture
capitalists can reject you because of a million things, and don't be surprised
that some of them may even be trivial.

What you need along with an application

There are five documents that you need to present to the investors along with
your application form. These documents will serve as a representation and
summary of your company. Your sales pitch may play a role in your overall
presentation but the gift of gab is not enough. Investors want to see that you
are worth their time and money in print.

First is the executive summary. It contains your business' investment
opportunity. It's just one page and available for the public. It is made in a
way that anyone can read and understand it.

The second is the Investor ready business plan. This is different from the bank
ready business plan because it contains the marketing strategy of your business
for the investors. This will show the movement of the company along with the
investor's funds and positive returns. In this document investors only want to
know two things: how will they earn back their money and their mitigation risk.
This document is used to sell your company and presents to the investors your
company's worth.

The pitch: the presentation of your business with charts. This usually takes
about 8-10 minutes and 12-15 charts. This is quite the same with a sales pitch.

The fourth document that you are going to need is the Private Placement
Memorandum. This document is used to protect the interest of both the investor
and your business. If you don't have this legal document, the investors can sue
your business for a refund if you do not produce the results you stated.
Investors only read this document if they have decided to invest in your
business.

The fifth and the most important document is the operating plan. This is the
blue print of your company that serves as the integral part of the business
plan. It contains a comprehensive overview of your company. The operating plan
contains the organizational charts, production and marketing strategy.

Investors want to know that you have a structured plan as your company grows.
It also tells your team what is expected of them as the company progresses. It
also contains the changes in your strategy in a competitive market.

Screening of emerging businesses by investors will be quick. In normal
circumstances, private equity firms reject a large percent of applicants. In
most cases they are only required to approve certain of number of applicants.
Make sure that you have a good business plan to back you up and little gift of
gab to convince your investors.

Venture Capital and Grants -- Is It Right For Your Business?

You've heard of some companies which were put up through venture capital and
grants, and wondered if you, too, can establish your own. There are many
venture capital firms that you can find through the internet, and still some
that you or your friend knows.

You did your research, made the best business proposal and are about to send
them out. While it may seem the perfect financing scheme for you, what you and
most people don't know is, it does not apply to all types of businesses.

For one, these firms have a certain investment criteria, and if your proposed
business does not fall within their specifications, then chances are your
proposal will not be approved. Because of the many proposals that they receive,
and with the limited slots that they provide, screening of these proposals is
rather strict. There is therefore the need for you to draft a stand-out
business proposal because of the stiff competition. Or you would need the
referral of a friend whom the firm trusts.

These firms concentrate on specific fields, so if it does not fall under these
industries, then VC is not right for your business. These are
technology-related industries, those which can give a high yield of profits
after a short period of time. If you want to invest in industries like real
estate or a restaurant business, then VC is not for you. If you're thinking of
a long-term investment, or if you make the mistake of falling in love with a
company too soon, then forget about VC.

Also, if you are the type of person who wants to be in control always, then VC
is definitely not for you. Once you enter into a venture capital scheme, you
must be ready to give up the reins to the capitalists. They call the shots.
They provide the directions and strategies necessary to carry out the business.
They perform management decisions. If you want to do things your way, then
perhaps consider other funding sources at this point.

If venture capital is not for you, then there are other funding sources
available. There is what is called as angel investors, or individuals who also
provide funds for start-up companies. This is ideal if the capital that you
require is not that big. You can also secure bank loans. However, the
disadvantage of this type of funding source is the liability of repaying the
loan regardless of your success or failure.

There are also investment programs provided by the government such as the Small
Business Investment Company Program. There are also other federal, state or
local programs that you can enroll in. Of course, there are the ever-reliable
family and friends who can lend you some money for capital.

Venture capital and grants is not something that is impossible to attract. As
long as you know how and where to find these financing firms, then there is the
chance for you to raise venture capital.

But before you start working on the financial aspect of the company that you
wish to establish, you must first consider if venture capital is applicable.
You need to look into other sources and not set your mind on venture capital.
Otherwise, all your efforts will be put to waste.

Making a Difference with Non-Profit Venture Capital

Most of us don't really care much about making a difference. Most of us didn't
even care about pollution and global warming until gas prices soared, forcing
people to swap their SUVs to hybrid vehicles. Money makes the world go round
they say, and even simple dreams get tainted by commercialism.

Artists don't just play music but also convince their fans to buy overpriced
merchandise just because it has the name of their idol printed on it.
Fortunately it has become more and more obvious to the people that there are
others who barely manage to get by. Non-profit organizations also seek venture
capital to help others.

Most of these are non-profit organizations who aim to help and make a
difference in their community. Nowadays fraudulent schemes abound. This is one
of the reasons why venture capitalists don't invest their money in these type
organizations, besides the fact that they won't earn anything in return.

Non profit organizations for the benefit of other people

Non profit organizations do exist to help other start up businesses. A non
profit organization called Alliance of Angels provides funds for new
businesses. It an organization composed of Angel investors. There are also
other non profit organizations that exist like them. Unfortunately, like
Alliance of Angels, screening can be strict and very competitive.

They also create non profit businesses that are involved in a movement called a
social enterprise. These social enterprises, such as Goodwill Industries and
Salvation Army, provide job opportunities for disadvantaged individuals. This
includes individuals with mental and physical disabilities, don't have any work
experience and lack education. Other non profit businesses also hire low income
high school students and drug abusers.

The latest development today is that non profit businesses don't just provide
job opportunities. Organization such as Food from the Hood, Pueblo Nuevo
Development and Chrysalis are an example of this. They create programs that
train and develop a disadvantaged individual's skill to be able to find a
regular job with a living wage. These businesses are able to sustain
themselves, which in turn enable them expand and help more people.

Others provide capital for businesses that are focused on making a difference.
The Social Venture Capital Organization provides seed capital and grants to
businesses that have ideas valuable to their community.

They are looking for businesses that are geared towards addressing key social
concerns such as poverty, hunger, malnutrition, hate crimes and crime
prevention. They provide counseling and management support for non profit
businesses to be able to turn their ideas to reality.

In this money driven world it is a relief that organizations like these exist
that is willing to make a difference in their community. Organizations like
these encourage non profit businesses to start and grow.

There are also firms that encourage profit oriented businesses that bring make
an impact in their community. The downside is they may encourage economic
development in their community but not to the benefit of the people who live in
it that also need help.

If you have non profit business seeking venture capital funds you can approach
this type of organization. Although they may not be as many as traditional
private equity firms they still do exist. This time they are willing to invest
in a company not out of pure gain.

Kinds of Venture Capital Firms and What They Do

With the growing popularity of venture capital comes the increase in venture
capital firms. Because of the possibility of striking gold through venture
capital, there are now more capitalists than there were decades ago. The common
impression of these firms is that they merely provide for the finances or seed
money for a start up company. Aside from providing funds, what other things do
they do?

First let us discuss the kinds of venture capital firms. The most common ones
are private independent firms. Usually operating under a limited partnership,
these firms are not subsidiaries nor do they have affiliations with other
institutions.

Banks and other financial institutions, working through their affiliates or
subsidiaries, constitute another kind. There is also what we call as direct
investors, or those who does the investment in behalf of industrial or
non-financial corporations.

Still another group is what we call angel investors, or wealthy individuals who
also help provide venture capital.

Venture capitalists make up these firms. There is what we call as generalists,
or those who invest in different industries, locations, or stages in a
company's life. Those who invest in a particular industry or location only are
called specialists.

Venture capitalists act as partners as they help put up the company. Because
they are more knowledgeable in the specific field of business than the new
entrepreneur, these capitalists help provide the policies as well as strategy.
More often than not, company management has no choice but to follow them.

The first important job for the firm is the selection of business proposals.
This constitutes a large part of their job. With the many proposals sent before
them, it is hard to read and analyze thoroughly all of them. There is therefore
the need for research as to which industries and fields are most feasible. Once
these industries have been identified, it would then be easier for the
capitalists to analyze the proposals, as they are able to weed out the bad
proposals or those which they are not inclined on doing.

Since they have a say in the management of the company, they also exercise
management decisions such as the hiring of management team, purchase of real
estate, entering into an agreement with other companies, and many others. They
also assist in other aspects such as product development and marketing.

Part of the firm's job is to find alternative sources of capital. Since these
firms belong to a certain network, it is not surprising that they know other
firms and capitalists who may later be of help in terms of funding.

The capitalists are not the only sources of funds for the firm. Some of the
money may come from other institutions such as pension funds, endowment funds,
foundations, angel investors and other corporations. That is why there may be
instances where additional funding is from other sources.

Venture capital firms are not mere financiers or investors. As partners of the
entrepreneur, they contribute in any way possible for the success of the
company. The key then is in choosing the right firm for the type of business
that you would want to enter into.

Just like in entering into a partnership, you wouldn't want to be partners with
someone whom you don't like to work with.

Venture Capital Firms in New York: Chase Your Dreams

Starting a business is not as easy as it looks. If you have the money support 
your ideas you can start up your businesses. Unfortunately not all of us have 
enough money. There are times that even bank loans refuse to provide funds for 
your business.

Fortunately there are venture capital firms are willing to raise the stakes and 
take the risk. Relying on outside investors is natural for business, even 
established seek venture capital funds for added capital. Finding a private 
equity firm is not difficult, especially if you're in New York. In the city that 
never sleeps, money continues to roll even though the CEO is asleep. 

JP Morgan Chase and Co. is one of the leading venture capital films in New York. 
It's a firm that has $1.6 trillion in assets and operates in 50 countries. Its 
headquarters is located in New York wile its commercial banking headquarters is 
in Chicago.

New York is considered one of the hubs of business so it's natural that you will 
find the leading private equity firms there. Most venture capitalists are 
interested in high technology but JP Morgan and Chase leans toward a sector that 
they experienced with: banking and financial services. 

Chase and Co. 

The company has a long history dated back to 1799. Six companies merged in 2004 
to form JP Morgan Chase and Co. These companies are Chase Manhattan, JP Morgan, 
Chemical Banking Corp., Bank One, National Bank of Detroit, First Chicago and 
Manufacturers Hanover. 

JP Morgan portfolio includes businesses in investment and Private banking, 
private client and worldwide security services, asset management and one equity 
partners. Chase invests in consumer and banking businesses in the United States. 
This includes credit cards, home finance and equity loans, auto finance, small 
business, insurance and education finance. Their commercial banking business 
focuses on middle market, equipment leasing, corporate business credit, and 
commercial real estate. 

Apart from engaging in large markets they also invest in communities to 
strengthen economic development. The Community Development Group provides 
capital, access to its resources and network. They serve low to moderate 
income communities, individuals and families, and small businesses owned by 
minority and women. 

They help these communities by providing services through credit, banking, 
technical assistance, mortgages and advisory services. They also provide funds 
for non profit businesses located in these communities. 

The best part about the firms is that they are willing to invest in a diversity 
of partners. They are operating in more than 50 countries which mean they don't 
just focus in positive returns but also a diverse investment portfolio for the 
benefit of its clients.

The firm is a big company that caters a wide demographic. They are focused not 
just on big start up companies but also small ones. Naturally, getting your 
business plan approved may not be easy. The firm poses a promise but that is not 
a guarantee that your business will be approved with a check. It's best to 
select a firm that matches the objectives and goals of your company. 

There are many venture capital firms in New York and JP Morgan is one of them. 
As a leading global financial firm these gives them a cut above the rest. 
Seeking out outside investors for seed or growth capital is going to be 
essential for any business.   






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