here are various misconceptions about Venture Capital financing. The public knows so very little other than advising the entrepreneur that "you should get financing from a VC or Angel Investor." The chances of getting VC or AI financing ranges from "slim to none" to "a great possibility" depending on you, your product or service...all things that would be in one's business plan.
Look out, what you read and hear about there being lots of money for starting a business available from Venture Capital (VC) or Angel Investment (AI) financing, may not be true...in fact, it is not true! Yes, there is in some cases, VC and AI financing is available, but it is not available as thought. There is a suggested timeline in raising capital...since when you are in business, facing expenses and overdrafts, "time is money." The most import condition is the timely submission of a "winnng business plan." A winning business plan is not one that can win contests or is the fanciest. It is one that shows caution and optimism in realistic fashion. If they do not see it this way, the chances of obtaining financing is nil.
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*Why should I look for a professional VC firm?
It depends on how fast you want to grow. History and statistics will show that if you “bootstrap” it will take time. Time is money, and others may be gaining on you once your product/service hits the marketplace. If it’s a new product/service there will be a lot of situations develop that you have never faced. VCs in most instances have, since yours is not the only start-up in their portfolio. Business takes a certain regimen; start-up, second round financing to bring on additional management, third round financing ( new plant, equipment, licensing, etc), mezzanine financing for a public offering. All this is a planned business regimen that has not changed over time except for periods of recession when investment capital and soft loans becomes scarce and the timeline becomes longer.
Professional Reviews
A Venture Capital Primer.
“For the novice entrepreneur and start-up business it is essential to become street Smart as quickly as possible. Mr. McNeal’s Venture Capital Myths provides just such a tool for the small business, just starting up or in early phases of growth. Where most people are only 20% aware of their surroundings, Mr. McNeal’s insights to Venture Capital will raise your awareness of start-up and early growth financing and give you the confidence to go forward in search of capital when and where it is needed. A must read.”
--James L. Vancura, C.E.O. – Founder Charitable Success Consulting. Member, Association of Fundraising Professionals (AFP), Las Vegas. Nevada. http://CharitableSuccess.com
