An Outlook Into A Venture Capitalist Mind by Wade Henderson
Venture capitalists unlike banks are looking to provide funding to small businesses that look promising. Their main goal is to be able to resell their stocks after 5 or 7 years assuming the business has become successful. Bankers would request collateral from new entrepreneurs. Venture capitalists on the other hand focus rather on the people who will manage the project.
The venture capitalist will carefully analyze all projects that are proposed before making an investment decision. In the end only 5 to 10% of projects will be selected.
We show you here a few of the elements that venture capitalist consider before choosing projects. These results come from a survey performed on 70 venture capitalists.
Products Market. It covers aspects relating to the nature of the product market the estimated market size growth the seasonal nature of the activity.
Strategic competitive. Criterion relating to the concepts of strategy competitive dynamics including the nature level of competition power suppliers distributors the ability to block the penetration of new entrants
Team leadership. It defines the leadership skills experience of leadership management team.
Other important factors are also competences in marketing administration organizational structure sales production of the business.
The business also needs to be financially sound have positive trends of development return rates.
Funding is factor that determines how the relationship between the investor the company will be. This relationship is defined by the terms conditions the both parties agree on. Venture capitalists manage their portfolio carefully in order to provide financing to the business according to the contracts they have with each.
These elements are fundamental during the qualifying process that venture capitalists angel investors undergo in order to prioritize which projects they will provide funding to.
Although bankers may be more attracted by a business financial history venture capitalists regard other factors highly. Managerial skills the personality the leadership of the entrepreneurs are for venture capitalists equally important.
Wade Henderson recognized Professional 15 yrs in the Business Finance Field strong reputation for getting the deal done. IMMFinancial. com private venture capital immfinancial. com pf. htm venture capitalist immfinancial. com pf. htm Visit the Uber Article Directory to get a totally unique version of this article for reprint. An Outlook Into A Venture Capitalist Mind
