What are some of the sources companies can turn to for venture capital funding? What analytical questions will be at the top of the VC's due diligence list prior to offering capital to early stage firms?© BrainMass Inc. brainmass.com March 4, 2021, 8:12 pm ad1c9bdddf
Sources for venture capital funding includes friends and relatives or High Net worth individuals that provide the necessary equity capital for businesses. Other sources includes private equity funds/ venture capital funds or other strategic investors.
Venture capitalists consistently emphasize the importance of the management team in an entrepreneurial venture and focus much of their due diligence on the key people involved. They assert that a good idea is only executable when implemented by a top-notch executive team. Personal introductions are the best way to give your plan a chance. Use your network to find mutual acquaintances. Introductions give both sides an immediate reference point and raise your request above the incoming noise.
The following questions are among those most likely to be asked. (Source: Rainmaker Capital Group)
What type of business experience does the management team have?
Are the members achievers?
What motivates each team member?
Can the team accomplish the job outlined in the business plan?
How does your company and product fit into the industry?
What are the current market trends?
What are the keys to success in ...
What are some of the sources companies can turn to for venture capital funding? What analytical questions will be at the top of the VC's due diligence list prior to offering capital to early stage firms?