A Firm Start-up On Your Venture CapitalIf you don’t have much of an idea how the mechanism of such firms work then you have to read along. Partnership is the key concept in venture capital firms. There are so-called general partners who are the individuals that act as managers of the firms and whose extent of responsibility includes investment advises on the proper handling of capital funds. There are investors on board who are considered as limited partners. The roster of investors is composed of institutions and individuals having credible net worth which means that they have the capacity to provide large amounts of capital when the need arises. Insurance companies, mutual funds, financial endowments, and pension funds are some of the capital resources that can be tapped on. There are different types of venture capital firms which can cater all sorts of business there is. There should be a considerable amount of time and effort to be dedicated for research when the need for these firms arrives. There are certain criteria that you can set in order to identify with the capital firm that will really coincide with the needs of your business. Let’s take a look. First thing to look at is the business policy which involves knowing whether this organization works with businesses on the starting phase or with businesses that have been recognized fairly well. Then you must find out if the industry they focus on match the industry your business is part of. You also have to make sure that the investment they can put on the table can suffice the amount currently needed by your business. With this in mind get into the shoe of the other party and find out what sort of investment return is expected from your side. Last but not the least you have to have an understanding as to what extent of involvement this firm is willing to give. Aside from the common venture capitalists that are commonly present within the firm’s circle there are also other characters that you have to acquaint yourself with such as venture partners, entrepreneur-in-residence or EIR, associate, and principal. Basically venture partners bring deal to the table and thus are only compensated due to the successful negotiations that they invite. EIRs are part of the temporary army of the firm. They are highly regarded as experts of certain fields and are called on based on their qualifications for a certain agreement. Individuals belonging to the associate posts are considered to be on an apprentice phase wherein each level of promotion can lead to a principal position. Now if you’re on the principal status and show enough brilliance in your work then you’re headed to the office of a firm partner. Think about this. No matter how good you are at every single business venture and you’re start-up record is quite impressive a single wrong turn can lead you to a position in dire need of extra capital therefore you should know every inch of detail about venture capital firms. Comments |
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