Before a company can really take off, it must have two things: a really great idea and money. Unfortunately, the kind of people who have new and innovative ideas about how to cure sleep apnea in Toronto are not usually the same kind of people who are adept at making money through investments. As a result, inventors and proprietors of small companies looking to go big often have to seek out private investors to provide them with the money they need. These private investors are known as venture capitalists.
A venture capitalist is an investor with fluid cash reserves who is willing to take a big risk on a new company. These investors are looking to make it big on your airport limo company and if they think it has a good chance of success, will finance your launch into the business world. Of course, they don't do so out of the goodness of their hearts. They will want to own a significant portion of your company in return for their investment.
You might wonder why any business owner would willingly relinquish the company's reins to an investor. Why not just get a bank loan? The answer is that the types of companies that need venture capital are the ones that have not seen enough success to demand a bank loan and don't have any Real Estate they can sell to back their next move. For these people, they have to attract the attention of venture capitalists or their dreams of making it big are dead in the water.
Most venture capital deals are made in private. A Louisville catering company will research who in the area has available venture capital and will set up a private meeting where they give a presentation on their idea. However, modern television has also created a new avenue of approach for business owners in shows like Dragon's Den and Shark Tank, where TV producers choose business owners to present to a panel of venture capitalists on the program, who will then individually bid on or reject the project and give feedback on their decision.
In order to interest a venture capitalist, a business owner has to have a very good grasp on why a photographer in Portland would need their product, what demographics they're aiming for, and what their profit potential is. Their idea also has to be simple but original and easy to realize. Confidence, common sense, and knowledge are key and your product or system must be ready to demonstrate. If you want to get an idea of what separates successful pitches from unsuccessful ones, just watch a few episodes of Dragon's Den or Shark Tank. Ready to start looking into venture capitalist for your Wheelsauto.com website? You can start by looking at the CVCA and for start up tech firms you can visit Walkersands.com Best of luck!