Venture Capital has gained tremendous importance due to the expansion of start-ups. Venture Capital refers to the source of finance which is provided to those businesses which are new and have a unique idea.
Goldmann and Sons plc can put you in touch with firms who invest in these early-stage companies in exchange for equity – an ownership stake in the companies they invest in. These firms take the gamble of financing risky start-ups in the hopes that some of the support will become successful. Venture Capital is attractive for new companies with limited operating history that are too small to raise capital on public markets and have not reached the point where they are able to secure a bank loan or complete debt offering.
Some Benefits of Venture Capital
The first and foremost advantage of Venture Capital is that the company which is new has difficulty in raising funds both from equity and debt and an idea without funds is similar to a bank account without money. For a businessman who is talented and has the business idea but no money, Venture Capital is a blessing as it gives the opportunity to turn a seed into a tree.
As far as Venture Capitalists are concerned, Venture Capital Investment can be very fruitful because if the company turns out to be successful then the stake of Venture Capitalists generate returns ranging from 50% to 500% per annum which is far greater than any other investment and that is the reason why Venture Capitalists take the leap of faith in new and promising businesses.
Another advantage of Venture Capital is that the business gets the expert opinion of the specialist Venture Capitalists we introduce you to. They have been in the market for a long period of time and their experience is invaluable during crunch situations. Venture Capitalists do not just provide capital they also give their experience to new businesses, which is crucial as far as a new business is concerned.