| The Great American Dream is to start a company, | | | | have the prospect of going public and going huge. |
| have it be a success, take it public and reap the huge | | | | We are talking about the Microsoft and Google type |
| financial rewards. Well, there are lots of Great | | | | of sizes. If your company doesn't have the prospect |
| American Dreams, but this is certainly a popular one. | | | | of being really big, don't bother contacting any |
| To pull it off, most companies will look to venture | | | | venture capitalist funds! The investors are looking to |
| capital funding for the necessary funds to make a | | | | hit home runs, not singles. |
| good idea into a great company. | | | | Just because venture capitalist are swinging for the |
| To really understand venture capital, you need to | | | | fences doesn't mean they don't take risk into |
| understand it from the investor's perspective. | | | | account. Of course they do. In this case, they do it |
| Imagine you have a nice chunk of change sitting in | | | | by diversifying. The average venture capital fund will |
| your bank account. You want to put it to work. Yes, | | | | invest in 5 to 10 companies. There is no expectation |
| you can shoot for the 7 to 10 percent return of the | | | | that all of them will make it. Instead, it is expected |
| stock market, but you would rather go much bigger. | | | | that most will fail to work out. The money lost, |
| Where would you look? The answer would be either | | | | however, is slight in comparison to the huge rewards |
| commodities trading or trying to get in on companies | | | | for the 1 to 3 companies that go public and take off. |
| that have the potential to go huge before, obviously, | | | | Is venture capital a good funding source for a |
| they have taken off. | | | | company looking to make a big move? Yes, but it is |
| Venture capitalist focus on this second ideal. They | | | | vital to remember the goals of the VCs and tailor |
| are looking for companies that are small now, but | | | | your proposals accordingly. |