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How does Venture Capital Funding or VC Funding Works

Updated on February 10, 2016

How Venture Capital Works

How VC Funding Works

Go for Begging to AInc

Successful Small Business Needs Venture Capital

Is there need for Venture Capital

Do you need VC Funding for your Small Business

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How to go for Venture Capital Funding

When not to go for VC Funding

You should not go for Venture Capital Funding if:

1. You want to have complete control over business

2. You want to diversify and identify alternate source of income

3. You do not want anyone to have share in your profits

4 You want to enjoy the independence of running your own company

5 You want to retain your original team.

6 You want to limit the scale of operation and avoid headaches.

7. You are not risk taker

8. You do not want someone else to take credit of your success.

The ultimate aim of venture capital firms

Hot Sectors For Venture Capital Firms

The hot sectors for venture capital firms are:

1. Information Technology

2. IT Enabled Services

3. Services

4. Education

5. Real-Estate

6. Bio-Technology

By Grace of Lord Shiva and Maa Parvati, they have now started investing in agriculture sector too. May Jesus and Bajrang Bali give them sense that their primary motive is to help starters, not just to become a Money Making Machine.

How Venture Capital Works -the drawbacks.

There is only a small percentage of deals which get VC funded. Out of 100 projects which venture capitalist receive they fund only one. Venture Capital funding is a high risk business, because out of 10 projects which VC fund only 2 gets successful. So VCs are most finicky about choosing the projects.

The only alternative left is Crowd Funding for rejected entrepreneurs and sites likes Gofundme comes into picture. It is advisable to new ventures to generate some traction (At least 1 million dollar in revenue) before going for VC funding because then only they will have a model which would be scaled with the help of VC money.

Lot of ventures i have came across have burned the VC money and have become bankrupt.

The Deal Flow


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