Venture Capital

Venture Capital is a very specialized resource for a very few, very risky businesses who show great potential of making a lot of money in a short period of time. Commonly known as a "VC", a Venture Capital investor is a person or a fund that provides very large amounts of money to companies who have a proven concept, are close to taking their product to market, and can demonstrate to the VC that they have a chance of paying back the VC's investment 10 times over in a year or two. VC's are looking for the next Microsoft Corporation. It's a rich pot of gold but one that very few can actually reach into.

Usually the VC will want part ownership of they company it funds and is willing to provide a lot of management and other assistance in order to make their investment pay off. And they're going to want a say in what you do. So, it's not for everybody. In fact it's for hardly anybody. It's especially not appropriate for service firms or for restaurants. But then, hardly anybody's going to lend money to a restaurant.

These days VCs are not giving money to new businesses. They're using their funds to help succeed those businesses in which they've already invested so they can get their money back.

So if you're thinking of relying on venture capital as a source of funds for your new business, don't.

Entrepreneurship is the life's blood of all my professional activities. It makes them go. And go read my mysteries, The Case of the Kearney Music School Murders and No Stop on Red, both available at Amazon.com. You can read the first one for free at wwww.kearneymusicschoolmurders.blogspot.com or buy it from Amazon.com more cheaply than you can print it out.