

Type of
Investor - Venture Capital Investments are made by a variety of investors. The investor can be a large VC Firm with over
$1,000,000,000 in assets or a small VC Firm with only a few million in assets.
The investor can also be a private individual commonly referred to as an Angel
Investor or small group of individuals who have form an investment vehicle such
as a partnership, limited partnership, limited liability company or a
corporation. The investor can even be another corporation that likes the research
or product the small private company is working on and wants rights to that new
product or research so decides to fund that small private company.
Type of
Company - The type of company receiving the venture capital investment can be a
company that has been in existence for 10 or more years, but is more likely a
young company in need of funding for growth or expansion. It can also be a start-up company with no
revenues, just a business plan.
Unfortunately, it is extremely hard for start-up companies with no sales
to raise VC funding. That is because without a proven business model or sales
of any kind the group or firm providing the funding deems it to be extremely
high risk. This is
especially true if the company seeking funding does not have an experienced
management team.
Click here to learn more about
Venture Capital Investment and Funding.