Is There Start-UP Capital For New Ventures
- Yes, there is capital available for new ventures. Remembering that the majority of new ventures fail, it is important that the presentation of the new venture must be properly packaged.
- There is no institutional venture capital for startup businesses. The institutional capital is only available once a new company has proven the need for the product or service.
- Startup ventures are generally funded by angel investors that are prepared to take the risk. Angel investors are generally wealthy individuals and some of these are organized and have professional managers performing due diligence.
- If a venture is to be funded in this economy it will need to prepare the following:
A detailed business plan that describes:
- Executive Summary that outlines the opportunity, business objective, why the idea will working in the market and keys to success
- A Summary of the Proposed Company
- Proposed management structure of the company
- Market analysis
- Target customers
- Services provided
- Competition
- Detailed Marketing plan
- Competitive factors that will lead to success
- Sales strategy
- Detailed financial forecast with description of the major drivers leading to success
- Description of the management team and their experience in the target market
- Financial proposal
Venture investors are seeking companies that have potential for extraordinary returns. Most entrepreneurs are passionate about their venture and have to understand that they need to convince the potential investor that the opportunity is approaching a market with significant potential to generate revenues and profits in a reasonable time frame. The investor will want to know what is the end game and time frame. This means will the business be and attractive acquisition candidate, an IPO candidate or does it have exceptional growth potential.
Author: R W Wright
Article Source: EzineArticles.com
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