What is the minumum requirement to get venture capital?
Do I really have to incorporate my business or will it work if I open a business checking account?
I need to know what is the requirement.
In order to be considered for Venture Capital Funds, you will need to have a very solid business plan, an excellent management team, commitment (generally in the form of funds invested) from the founders, a timeline to be self-sustaining without the assistance of venture capital and most importantly a targeted return on investment that is extremely high (usually around 40%).
Because venture Capital firms are seeking such high returns, they are not suitable for many start up businesses, especially considering that many venture capital firms want their ‘loaned’ money PLUS their return on investment (40%) within three to seven years. Venture capital is most commonly beneficial for companies that require up front monies for non-physical assets (software and other types of technology firms) that simply can’t be bank financed since the assets are not pieces of equipment or property per se.
Venture capitalists invested some .6 billion in 797 deals in United States during the 3rd quarter of 2006, according to the MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association based on data by Thomson Financial.
A recent National Venture Capital Association survey found that majority (69%) of venture capitalists predict that Venture Capital investments in United States will level between -29 billion in 2007.
on: 4th February 08