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Venture capital as a business financing option

February 22, 2011 By admin

Starting a business can be the most rewarding decision a person can make, especially in the current economy. It is not easy, many stressful days lie ahead. For those who decide to brave it, who have an idea, have chosen the name and even created a plan, depending on the idea, are hit by the usual hurdle that is; financing for your business.

Equity finance is a way to raise share capital from investors in return for handing over a share of the business. Equity finance can be good for raising long term finance but to sell shares means to sell ownership and distributing future profits. [Read more...]

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Enterprise Finance Guarantee

February 8, 2011 By admin

If for any reason a small to medium company with a clear business plan requires a loan, and is struggling to get one from a lender, there is a solution. The credit crunch has had an affect on most of. That is where the government Enterprise Finance Guarantee can help.

The loan guarantee scheme, run under Department for Business, innovation and skills provides lenders a government guarantee for 75% lenders exposure on non individual loans. If you can provide 25% collateral, the rest is guaranteed by the government scheme. Set up January 2009, the aim was to keep the economy running during the recession. [Read more...]

Filed Under: Angel Investment, Business Finance, Business Loans, Venture Capital Tagged With: ,

Dragons Den

February 4, 2011 By admin

To start your own business is hard enough work as it is. Sometimes money just does not stretch far enough.  If you can prove your idea works and will be successful, venture capital may be an option for getting extra finance for your business. It is not an easy decision to make as venture capitalists will require up to 40% equity in order that when the business grows, but unlike a loan, you may not have to pay the money bank. Thanks to the wonders of television, we get a glimpse of how venture capitalists actually think.

Dragons Den is a BBC series that sees entrepreneurs and inventors applying for finance from five multi-millionaire investors listen to bids for support, they decide what they will take on, and if necessary will compete and bid for the products they like. The show has been on our screens for five years and in that time we have been given a glimpse of all sorts of inventions and ideas some very good and some that frankly need to go back to the drawing board. It is extremely hard as we notice to impress these millionaires but not impossible. [Read more...]

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Venture Capital, Business Finance, and Angel Investment for small business

January 18, 2011 By admin

A brief and general explanation of Venture Capital is the financial and funding setup from the early stages of starting a business as well as business in new turnaround situations.  Generally it can be a high risk investment but a Venture Capital can provide a higher than an average return. A person who takes care of and makes these investment decisions is known as a Venture Capitalist.

The typical role of a Venture Capitalist would be overseeing the funds used from a Business to start getting the Business on track and going. The Venture Capitalist will also try securing and arrange other finances from other sources and investors.  They will also keep an eye over proposed business plans and often reform and revise the initial plans and strategies to what they feel would be the most effective.

Another job of someone who works in Venture Capital is to hire and fire the key managers when they feel the situation is necessary. They also find other supporting business companies and contacts and buy current owners when the chance presents itself in the right situations. [Read more...]

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