Venture capital is the money invested by wealthy investors in start-up and emerging companies. Venture capital investment is done in exchange of equity (shares) in the invested company. These investments are usually done for start-up companies, who have fresh and innovative ideas and a good long-term growth perspective.
Venture capitalists (VC)
Venture capital investors are called venture capitalists (VC). Finding a venture capitalist is one of the major task for start-up companies, since this will be the major source of funding for the company which do not have exposure in stock markets.
Though it’s a risky type of investment, the potential for above-average returns is very high for a venture capitalist. Venture capitalists have the right to influence on major managerial decisions of these companies, since the company partially runs on their money.
How to find Venture Capitalists?
Contact Venture capitalist association.
In India their organization is IVCA (Indian Private Equity & Venture Capital association) and their website is www.ivca.in
They will provide various resources to entrepreneurs for finding the right venture capitalist. These kind of associations conduct various events and seminars to update about the latest trend in start-ups.
You can also find a list of Angel Investors in their website.
Private Equity & Venture Capital Directory
IVCA is offering printed and online directory of Private Equity & Venture Capital through their website. You can subscribe to it by paying a nominal fees.
Ask successful entrepreneurs and start-up entities about their experience with their venture capitalists. Have a thorough knowledge about the venture capitalist you are about to join hands. Check out social medias and professional websites for references about them.
Internet is one of the best investigation tool to find more about venture capitalist. Read more about them through blogs and other articles. Interact with start-up companies and entrepreneurs in your same sector and check out their recommendations.
Look for a professional consultant. You can find venture capital consultants, corporate attorneys, and other professionals to find the right venture capitalist for your start-up. They have specialised skills to analyse and will help you by giving right advice for selecting the best Venture capitalist for your start-up business.
Recommended Read :
- Bridge Loan Start-up Ventures
- What is Vendor Financing?
- Raising Fund From Family and Friends for Start Up Venture
- How to Secure a Micro Loan for Start Up Business?
- How to Invest in a Start Up?
- Risks Involved in Start Up Investing
- How Can I Become An Angel Investor?
- How Risky is to Become An Angel Investor?
- What is Bridge Loan?
- How to Become Venture Capitalist?