Venture capitalists unlike banks are looking to provide funding to small businesses that look promising. Their main goal is to be able to resell their stocks after 5 or 7 years assuming the business has become successful. Bankers would request collateral from new entrepreneurs. Venture capitalists on the other hand, focus rather on the people who will manage the project.
Venture capitalists analyze projects meticulously before choosing those they are interested in. At the end, they choose to finance on average 5 to 10 out of a hundred projects.
We show you here a few of the elements that venture capitalist consider before choosing projects. These results come from a survey performed on 70 venture capitalists.
The product and the market are highly considered by venture capitalists. They seek to understand whether the market is ready for the product and whether it has tendencies for development.
Strategic and competitive. Criterion relating to the concepts of strategy and competitive dynamics, including the nature and level of competition, power suppliers and distributors, the ability to block the penetration of new entrants
The management and the leadership abilities of the people in charge of the project or business is one of the most important factors for venture capitalists.
Other important factors are also competences in marketing, administration, organizational structure, sales, and production of the business.
Naturally, the project has to be financially appealing, stable and promising for venture capitalists to be interested.
Venture capitalists also study the conditions under which the funding will be granted. The relationship with the organization needs to be effective, harmonious and convenient for both parts. Investors have to manage their portfolio carefully in order to meet the agreements with the contacts.
These elements are fundamental during the qualifying process that venture capitalists and angel investors undergo in order to prioritize which projects they will provide funding to.
Venture capitalists are looking for their mainly on whether the leader and the team have the leadership qualities and management skills to complete the project. It is these qualities that will affect the rest of the project.
Venture capitalists analyze projects meticulously before choosing those they are interested in. At the end, they choose to finance on average 5 to 10 out of a hundred projects.
We show you here a few of the elements that venture capitalist consider before choosing projects. These results come from a survey performed on 70 venture capitalists.
The product and the market are highly considered by venture capitalists. They seek to understand whether the market is ready for the product and whether it has tendencies for development.
Strategic and competitive. Criterion relating to the concepts of strategy and competitive dynamics, including the nature and level of competition, power suppliers and distributors, the ability to block the penetration of new entrants
The management and the leadership abilities of the people in charge of the project or business is one of the most important factors for venture capitalists.
Other important factors are also competences in marketing, administration, organizational structure, sales, and production of the business.
Naturally, the project has to be financially appealing, stable and promising for venture capitalists to be interested.
Venture capitalists also study the conditions under which the funding will be granted. The relationship with the organization needs to be effective, harmonious and convenient for both parts. Investors have to manage their portfolio carefully in order to meet the agreements with the contacts.
These elements are fundamental during the qualifying process that venture capitalists and angel investors undergo in order to prioritize which projects they will provide funding to.
Venture capitalists are looking for their mainly on whether the leader and the team have the leadership qualities and management skills to complete the project. It is these qualities that will affect the rest of the project.
About the Author:
Wade Henderson - recognized Professional - 15 yrs in the Business Finance Field - strong reputation for getting the deal done. IMMFinancial.com project financing finance project
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