| To understand what venture capital is, one must | | | | about being a good showman. Indeed the prudent |
| examine the motives of the two parties involved in | | | | investor needs to see concrete research and |
| such a transaction to get the full picture. Essentially | | | | numbers to back up the claims of the entrepreneur. |
| venture capital is the loaning of money to an | | | | This means market research and credible sources of |
| entrepreneur who has a "home run" idea but needs | | | | market statistics which clearly point to the concepts |
| seed money to get the project off the ground, but | | | | likely success. |
| lets look closer at this symbiotic relationship. | | | | An investor, especially a venture capital investor is |
| An entrepreneur essentially is an ideas wo/man. Many | | | | very very prudent and they typically understand the |
| entrepreneurs recognize the advantage of becoming | | | | risky nature of their investment activities but they do |
| a bit of a showman and they understand that | | | | it because they can command a much larger return |
| presentation is what it is all about. Convincing private | | | | on their investments. They need a due diligence |
| investors to invest can be difficult even if the idea | | | | report and a feasibility study as a first step apart |
| truly is a remarkable concept. Remember, even the | | | | from that as stated they need to see some |
| light bulb would not have sold had Edison not | | | | showmanship which represents the culture and the |
| employed sales people. The world needs to be sold...a | | | | personalities of the proposed management for the |
| good idea alone is never enough. | | | | project. |
| But a good entrepreneur will also not lose their head | | | | |