Is there a realistic exit opportunity for all shareholders in order to realise their investment?.Am I willing to sell some of the company’s shares to a private equity investor?.Does my team have the relevant skills to deliver on the business plan fully?.Can I demonstrate relevant industry experience?.Can it be protected by intellectual property rights?.Does my company have a product or service with a competitive edge or unique selling point?.Does my company have high growth prospects and is my team ambitious to grow the company rapidly?.The product/service must solve a clearly identified problem. The companies must be in a fast-growing, attractive sector, with a strong management team and demonstrable skills. Venture Capital funds usually invest in companies that are raising €500k+ in equity.
The venture capitalists will typically look to realise their investment in five years, either through floatation on a public market, a trade sale or for their stake to be bought out by the company. In contrast to bank finance, venture capitalists are not looking for scheduled repayment, but for a minority of the share capital of your company in return for cash.
As part of their mentoring and monitoring of their investment, they are likely to seek board membership.
In addition to injecting cash into the company, the venture capitalist is likely to add considerably to the credibility of the company and to supply management expertise, support and access to their contacts.
#Large venture capital firms professional
Venture Capital is capital provided by full-time, professional firms (venture capitalists) who invest with management in ambitious, fast-growing companies with the potential to develop into significant businesses.
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