What is Venture Capital (VC): It may be defined as capital infused in businesses that are new, untested and risky, but with high potential for growth and profits. It is financing of untested technologies, processes, systems, or products that have no guarantee of success, but tip the scales in favor of investing in them, on account of their high potential for growth and profits.
What is a Series A round or Series A financing? A Series, A round, or Series A financing refers to a venture capital or private equity investment where certain investors (e.g., private equity funds and/or individuals) invest in a company and the company issues certain (convertible preferred) shares to the investors in return. The shares issued are called Series A shares.
Venture Capital. It comes in many shapes, forms, opportunities... but shares a common characteristic: a risk is taken. In my line of work, I run against many "fire-in-the-belly" entrepreneurs who genuinely have a fantastic idea or business plan. Unfortunately, they lack the capital necessary to turn their business plan and/or ideas into a reality.
In the 50's the war was ending and the men were coming home to their families. Little did they know that their families had changed. Their wives had successfully worked the factories, producing the weapons required for the men to win the war. As the men tried to push the women back into their kitchens, where they thought they belonged, Bonnie Wise stepped into the world of sales.
It does not matter whether you are a fortune 500 company or a startup entrepreneur, joint ventures are the easiest and fastest way to position yourself for success. Many large companies who can afford to use other marketing methods for growing their business utilize joint venture because it is the most effective way to develop new markets, gain new customers, gain new alliances and create business growth without needing help from a bank.
One of the most important things to remember when doing a joint venture with someone is that you are creating an alliance. You are creating a business relationship that has a friendship brewing underneath. Joint Ventures explode your sales and are the fastest way to grow your business, this is all true. Yet, the most important thing you can do is keep that business relationship on the level.
Funding a business in the current environment has been a challenge for company owners. The business financing environment has not been friendly business owners, in part because many funding companies had problems of their own. Because of this, they have tightened their commitment requirements. Some companies have tried a different approach and opted to look for business loans.
As a result of the current credit environment, finding the necessary business financing to grow their companies has become the full time job of many CEO's, CFO's and company owners. For example, venture capital has become increasingly difficult to get - and understandably so. Some venture capitalists are being extremely cautious, while others just have their own financial problems and are not in a position to finance other companies.
The most important step of starting up a new business is to determine how much capital you can reasonably expect to raise, and what you should do if you cannot raise the amount you think you need. Further questions are: Should you try to raise all of the capital you need at one time or should you do it in stages? And, is it desirable to raise more capital than you require?
You're In For The Surprise Of You're Life If you're looking for some amazing solution to getting rich quick, you've come to the wrong place. Um... yes, I said the wrong place but that's only because I've learned the difficult way that there is no solution to getting rich quick. Even the people who sell those programs that claim to show you how to get rich quick didn't even get rich quick.