Purchase Solution

venture capital funding

Not what you're looking for?

Ask Custom Question

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?

Purchase this Solution
Solution Summary

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?

Solution Preview

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 ...

Solution provided by:
Sandeep Bardia, MBA
Education
  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
Recent Feedback
  • "Thank you. "
  • "Thank you"
  • "Thank you. I got 20/20 last week for my discussion you help me out with."
  • "Thank you. Great Job. "
  • "Thank you. Great Job. "
Purchase this Solution
Free BrainMass Quizzes
Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Operations Management

This quiz tests a student's knowledge about Operations Management

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

View More Free Quizzes
Related BrainMass Solutions

  • Approach to Venture Capital

    The disadvantages of venture capital are that venture funding is difficult to get, the funding investors can sidetrack the founders, and the ownership of the founders gets diluted.

  • What do venture capitalists do?

    Typically venture capital investment occurs after the seed funding, as more money is needed for growth of the operation.

  • Corporate Venture Capital

    221764 Corporate venture capital, private venture capital, angel financing and debt financing The advantages and disadvantages of corporate venture capital, private venture capital, angel financing and debt financing.

  • Money scenario

    Venture capital is private equity capital that is suitable for early-stage, high-potential growth companies. Describe your decision for choosing this form of funding.

  • venture capital financing

    385104 Venture capital financing Are manufacturing companies or service companies more likely to get venture capital financing? Explain. Yes, manufacturing companies or service companies are likely to get venture capital financing.

  • Venture Capital Funding/Valuation

    The solution answers what one should do with a venture capital funding/valuation problem.

  • Important information about Help with homework question

    Venture capital firms generally provide funding for companies in different stages like seed companies i.e. the pre start-up companies, start-up companies like one year old and the companies with more than one year.

  • Venture Capital & IPO's

    115636 Venture Capital & IPO's Theme 1 ? Why do you believe that venture capital funding increased as much as it did during the 90s? What would you attribute to these types of gains? ?

  • Due Diligence of VC firms

    76769 What analytical questions will be at the top of venture capitals due diligence list prior to offering capital to early-stage firms?

  • Information to Present with Request for Venture Capital

    Venture capitalists only invest in entrepreneurial firms and the aspirations of the business seeking funding is an important aspect for venture capitalists.

View More Related Solutions