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Expand Your Business using Venture Capital


By Abe Cherian

You may publish this article in your ezine Cheap Frans Nielsen Jersey , newsletter on
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Expand Your Business using Venture Capital
By Abe Cherian
Copyright ? 2005



Venture capital is a possible source of funding for new,
relatively unproven enterprises that appear to have
promising futures. However, such money is often hard to
come by.


Be realistic in your quest for venture capital. Venture
capital firms expect a business to be able to return their
investment not only with interest Cheap Mike Green Jersey , but with a large profit.


Many venture capital firms are affiliated with banks,
insurance companies, other financial institutions and large
corporations. Some are owned by individuals or private
groups of investors and a few are publicly held.


Once you accept venture capital Cheap Gordie Howe Jersey , you have relinquished some
of your autonomy and accepted the understanding that the
venture capital firm will take a large share of the profits
you earn.

As an entrepreneur, you should understand the nature of a
vendor firm, before pursuing this as a financing source.
This type of investor expects a projected return on
Investment that is directly related to risk.


The greater the risk Madison Bowey Jersey , the greater the return expected.
Typically however, an investment firm will not be
interested in getting involved with a new firm until the
business has established itself in some way, so the risk
factor can be determined.


The venture capital firm and its interest usually depends
upon the stage of the new firm's development. Once the new
firm has established itself and has a working
organizational structure Valtteri Filppula Jersey , a viable business plan and start
up arrangement a venture capital firm may be interested.


However, some firms prefer a later stage of new business
development, perhaps when the new company is in its second
or third round growth state and needs more capital either
to carry out expansion plans