Venture Capital comes from angel investors and venture capital firms. Angel investors often provide their own capital to finance a business for equity in the business in exchange. Venture Capital firms are specialists in funding startups and new ventures with the goal of a return on the investment.
Venture Capital is usually for these scenarios:
Any business owner or entrepreneur may seek Venture Capital, however, it is best for those businesses who do not have access to other lending.
Venture capital typically involves the following funding stages:
The main reason is the lending requirements are different and the excitement that can come from investors seeing your dream. A Venture Capitalist takes upon significant risk when funding a startup because there is no company history.
When you accept Venture Capital, you are releasing partial equity in your company to an investor, which gives them the ability to set terms. Many entrepreneurs may not find this type of relationship dynamic appealing - see the website TheFunded.com to see what other entrepreneurs have to say about their experience.
Lioness Enterprises, LLC can connect you with private investors through our many different partnerships that allow us access. We will advise you to keep your business equity before giving it up to a private investor by considering other lending options for your scenario first.