How Venture Capital Works for Start-Ups and Small Businesses?
With almost unlimited opportunities the advancement in technology is creating over the past two decades, many startups and small businesses today tend to seek for capital that could bring their dream business to success says Carl Kruse . While there is a wide range of financial sources that they can tap on, most of these entrepreneurs are hesitant in borrowing money from banks and financial lenders because of the risks involve. But good thing is that they've found a good alternative and that is by raising venture capital from the venture capitalists or VCs. Definition Venture capital is that amount of money that VCs will invest in exchange of ownership in a company which includes a stake in equity and exclusive rights in running the business. Putting it in another way, venture capital is that funding offered by venture capital firms to companies with high potential for growth. Venture capitalists are those investors who have the capacity and interest to finance