Expert advice for investors and emerging companies: A short guide through venture capital success
- 23 May 2023
Venture capital is a type of private equity financing. It’s provided by venture capital firms and is given to emerging companies or start-ups with the potential to experience high growth. Venture capital successes regularly make the headlines and often, large companies commit to continued levels of high investment, including Microsoft, Intel, and more.
By understanding the ins and outs of venture debt and lending, as well as how to nail your initial pitch, your vision of growing a high-growth business could become more attainable, empowering you to make the move.
Here is some insight that breaks down the process more clearly.
What advice can help investors and new businesses in raising funds and growing their businesses?
Depending on your plans, you may foresee the need for funding to help facilitate business growth. Whether it’s used to help with cash flow, make business acquisitions or invest in technology to improve your processes, any money provided by investors can make a huge difference to your business. Funding can look like borrowing money or selling equity shares in your company.
It is helpful to understand the difference between early-stage and late-stage venture capital. Early-stage investments could take a decade or more to exit, whereas late-stage investors are seeking a return on their investment.
Business owners tend to seek funding from centre capital firms if they need a sizeable amount of money, usually in excess of £1 million. In turn, you will typically provide a larger percentage of the business. High-growth start-ups commonly follow this route and it is usually a competitive area.
To improve your chances of securing venture capital funding, you’ll need to have a strong pitch in place. Typically, these instances will showcase the potential to positively contribute to the economy and propel into the global marketplace, so including tangible evidence that you are working towards this will be valuable. Similarly, investors should look out for this. Both investors and business owners may also seek support from venture capital advisors to access more in-depth market knowledge.
How can smart decisions about money and growth contribute to success in the global marketplace?
Smart decisions about money and growth can help you to establish yourself in a more competitive market and keep competition at bay. Growth can also help you to increase your market share and respond to any changes in market demand with ease, in turn helping to generate more revenue. It can also help to foster innovation in the marketplace and contribute to the national and global economy.
Strategic decision-making about money can help you stay afloat and keep your company’s credibility in good stead. By securing venture capital, you can help to cement your position in the global marketplace.