| Venture Capitalists are wealthy private investors who | | | | in a new and upcoming business with good prospects. |
| can help finance your business either it being a | | | | Making a proposition to an investor can be a scary |
| business in trouble financially or a new business | | | | thought, you need to remember they will want to |
| venture. | | | | know exactly what your plans are for coming years, |
| There is usually a five year lock up on Venture | | | | the market you will be promoting your product, |
| Capital investments, this means the Venture Capitalist | | | | service in as well who your target audience are for |
| or the business they are helping to fund cannot get | | | | this as well as how much it will cost to make if |
| out of the deal until the five years is up, sometimes | | | | necessary and the cost you will sell it for, showing |
| this may be longer depending on the agreed business | | | | the profit you will make on each product, item or |
| plan. They also charge management fees and | | | | service. One thing to remember is that investors |
| incentive fees as well as taking a good sized share of | | | | don't care about the dreams you have about this |
| your business. Unlike Business Angels, Venture | | | | venture, all they want is a good return on their |
| Capitalists like to have a director or management role | | | | investment in your business. |
| within the company to discuss the running of the | | | | Before going to see a possible Investor the best |
| business as well as keeping a close eye on their | | | | thing to do is to get advice from other business |
| investment making sure the business succeeds. But | | | | people in the same area you want to go into to get |
| there are a few Venture Capitalists who like to give | | | | their advice on your product and or service and their |
| the company the finance they require then take a | | | | honest opinion of the idea. |
| back seat and let the company who know the trade | | | | You will need a well detailed business plan when you |
| etc. and let them run the business on a day to day | | | | meet up with the Venture Capitalist and if you are |
| basis. | | | | turned away by them don't give up keep trying, if |
| Finding the right investor for you may be a scary | | | | show people you're serious about your venture and |
| prospect but there many Venture Capitalist firms | | | | wont fall at the first hurdle your more likely to win |
| now available which have investors waiting to invest | | | | people over with their own weaknesses. |