An Introduction to Financing Your Business with Venture Capital
- Price: £3.60
- Published: September 2014
- Type: Business Information Factsheet
- Format: PDF
Venture capital refers to third party investment that is used to fund business growth. The business owner effectively sells the investor a stake in their company in return for finance. Investors may be private individuals (often known as 'business angels') or venture capital firms that raise investment funds from a variety of sources, such as pension funds and endowments.
This factsheet provides an introduction to venture capital. It outlines the pros and cons of using venture capital to finance your company, and discusses the suitability of venture capital for different types of business. It explains where to find sources of venture capital, how to approach investors and describes the process involved in negotiating an investment deal. This factsheet also explains what happens when an investor 'exits' at the end of the investment period, and outlines sources of professional support for business owners who are considering approaching investors.