Showing posts with label Capitalists. Show all posts
Showing posts with label Capitalists. Show all posts

Write Winning Proposals for venture capitalists

You need to raise money to save for your project. You visit venture capitalists to see if you can get the money. A venture capitalist views your project as a pure investment. A venture capitalist has no emotional attachment unlike you. You need a proposal that is structured around a venture capitalists need not to write yours. What interest you may not be relevant to your potential donors. You need a business plan, "the investor is focused."

An investor focused business plancontains relevant information about your project. It addresses concerns, questions and fears, should dispel that any venture capitalist can. It should meet their needs exactly. Venture capitalists exist to make large profits. You want to see a good return on investment. By creating a business plan focused investors, it will be clear to Venture Capitalists that you concentrate prepared and competent.

There are four areas which must beaddressed:

Management Responsibility

Know your markets

Know Your Product

Know How Management, Markets and Products Make Money

Management Responsibility

The strength of the management of the project can make or break your proposal. Venture capitalists need to know that you can manage their money. They want to see a proven track record in areas specific to the project you are pitching. The ability of theManagement will be tested are so prepared.

Know your markets

Venture capitalists need to see where your income come from. Your company must prove to be a strong understanding of your customer base and able to meet their needs. Your plan must also be all the possible new or growing markets. Illustrate any research you have done, to emphasize this.

Know Your Product

Venture capitalists want to understand your product.You want to show you how the product that they will attract the financing to customers. The information in this section must be extensive and also the function of possible extensions or upgrades that have your product. This shows that you have thought about a long-term growth.

Know How Management, Markets and Products Make Money

It must be shown that to build the management links and paths between customers and product. This element must be very strongas ambiguous information, or a hypothetical relationship is alienating potential donors. Create a step-by-step guide on how their money is handled and how the customers money is received. This has to be clearly demonstrated.

Tie these points together, and you are already in the top 3% of the total venture capital submissions. Good Luck!

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UK Finance from Venture Capitalists

Any new startup would require proper funding and without that it is difficult to be successful in their business venture. Choosing your UK finance partner is an important step in setting up your business. The venture capital firm should be able to understand your business clearly and provide proper funding at the right time to make you successful. Hence it is important to select to UK finance partner.

For startups and new companies in the life science biomedical companies there is a venture capital firm called Abingworth. They specialize in funding biomedical companies. They understand the biomedical industry clearly and have experience in funding such startups. They need to maintain a close relationship with the management of the startup to make them successful. You can approach Abingworth if you are looking for UK finance for biomedical startups or new companies in that field. They fund companies that develop products and also which work on specific ailment areas.

Finance in UK is provided by venture capitalist firms only if they are interested in the area of business that they are funding. The potential for commercial success should be prominent. Most of the companies look at the management which is running the company. The main criteria for them should be a strong management and the idea of business should be novel. You business could also be the current technology but they look at how different you are going to do it. Your approach has to be different to be successful commercially. Some of the UK finance firms also help you to get the right management team in place.

There are very few venture capital firms that fund the early stage technology in UK. Finance for such new start ups are difficult to get if you are not approaching the right kind of venture capitalist firm. 'Pond Venture Partners' is one such company that funds the early stage start ups. If you feel that you business is not growing then you have to approach companies like this in UK for finance. They have vast experience in funding the technology startups and they know the difficulties that the start ups face. They even help you write your business plan and build your team if you have the right kind of idea that would click globally. If your business has the potential to make an impact globally then you can approach Pond venture partners right away for finance in UK.

To get your funding you may not know which venture capital firm to approach. This is the case for most of the start ups. They may not know who will provide them finance in UK. Under such circumstances it is better to approach a Venture Catalyst who will help you to be in touch with the right kind of venture capitalist. Companies like Sturgeon Ventures provide such venture catalyst services. They help you to get in touch with the right kind of VC firms and they also help you throughout your business. They do not provide you the necessary capital but they help you to link with those who might be interested to fund your venture.

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Business Angels vs Venture Capitalists

Have you these amazing ideas which you're sure you can put into practise and make a living out of your ideas. If so you're more than likely looking into financial help to put these ideas into practise. You may think bank loans, credit cards and loans off family and friends are the only options but Business Angels and Venture Capitalists are also a good option to consider.

Business Angels what are they you may ask, they often work as individuals who themselves are entrepreneurs and have made their dream come true in whatever business sector they chose. They have now have the experience and financial backing to help other entrepreneurs to start their own business just like themselves years ago.

Venture Capitalists are very similar to Business Angels they are often from an entrepreneur background have made a successful business and now would like to give back to other entrepreneurs and help them with finance for their new start-up business.

So you're asking what is the difference between them both, they are:

Business Angels - Give you the financial help you need when you need it, and invest their own money in your business. If it works within an angel network the angels will pool together with their investment as well as sharing research they each do. Angels understand the needs of a new business as they have been there themselves and therefore they not only offer financial help but they can offer good advice when no one else will.

Venture Capitalists - Give you the financial help you require when you need it but uses pooled money them and others have in a professionally managed fund. Venture Capitalists like to take an active role in the business they are investing usually being a director or on the management board of the business.

So if you're looking for some financial help for your new start-up business or even your struggling business you don't just have the options of:

o Family

o Friends

o Banks

o Loans

o Credit Cards

You have the option of using a Business Angel or a Venture Capitalist. Which ever one you decide to use the only way you're going to show your serious in wanting their help is to have a well planned and thorough business plan.

A business plan will not only be used to show your investor what you planned ideas are and your predicted returns in the next few years will be it will also be used for you to run your business well. It will show others what your initial goals were and if you succeeded in these as well as any risks you planned for and if any of these actually occurred and if they did, did you cope ok with rectifying the risk.

It shouldn't just be placed in a drawer and forgotten about it should be regularly updated. Your business will continue to change and usually out of your control and you should reflect on these changes within your business plan. You should have contingency plans to deal with any external influences that would affect your business and the way in which you run it.

You should now be a little wiser of the facts of the difference between these and how they can help you.

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Challenging Times Call For Learners, What Venture Capitalists Should Be Seeking

"In time of change, learners inherit the earth while the learned find themselves beautifully equipped to deal with a world that no longer exists." -Eric Hoffer, 1902-1983

Have the Courage to Learn

It would be hard to find a person willing to quibble over the premise that we are in times of change. Eric Hoffer, a prolific American social writer, understood there was great opportunity in change. Yet, he argues, the opportunity can only be realized with the confidence and self-esteem to ask questions and learn about the change that surrounds you.

The Paradigm Trap

Often, especially in the case of experienced entrepreneurs, we get trapped into paradigms, methods, and frameworks. Granted there is empirical data to support they worked. But, will they work now? This should be the abiding question in your current due diligence.

We Are In Change

We are in the midst of an unprecedented market conditions: gas prices are up, mortgage companies are imploding daily, housing prices are plummeting, people are more and broader connected than ever, the Internet gives the average person more data than Einstein had available in a lifetime, millions of consumer inquiries are generated daily on the Internet and 60% are never answered. What does all this mean?

What Should Venture Capitalist Do?

It means things have certainly changed. It means old paradigms may not hold. It means you and your entrepreneurs better be learning. In your next pitch, ask a few questions:


What have you learned about your market in the last 3-6 months?
How will this business plan leverage that learning?
Do you have a system for learning?
What is it? And, how do you synthesize it?

In times of change, have the courage to learn. What have your learned today? What will you do with it?

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Call difficult time for the learner, what should be looking for venture capitalists

"Fitted in the time of change, learners inherit the earth while the learned find themselves beautifully to a world that there is not much." -Eric Hoffer, 1902-1983

Have the courage to learn

It would be hard to find someone willing to split hairs on the premise that we are in times of change. Eric Hoffer, an American social writer, knew how big opportunity in change. Nevertheless, he argues, the possibility to be realized only with theSelf-confidence and self-esteem, and ask questions about the change that surrounds you.

The Paradigm Trap

Often, especially in the case of experienced entrepreneurs, we get into paradigms, methodologies and frameworks caught. Admittedly, there is empirical evidence to support they were working. But, they are now? This should be the abiding question in the current due diligence.

We Are The Change

We are in the midst of an unprecedented marketConditions: Gas prices are up, mortgage companies imploding daily, house prices are descent people are more and more diverse than ever before, connected on the Internet gives the average person had more data available than Einstein generated in the lives of millions of consumer inquiries each day via the Internet and 60% are never answered. What does it all mean?

Venture Capitalist What Should Do?

It means that things have certainly changed. It means not old paradigmshold. It means that you and your business better learning. In your next pitch, ask a few questions:


What do you have about your market in the last 3-6 months?
How is the business plan to take advantage of the learning?
Do you have a system for learning?
What is it? And, as you synthesize?

Learning In times of change, have the courage to. What have you learned today? What will you do?

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Venture Capitalists and Business Angels for Opportunity Seekers

Venture capital and "angel" investments seem like an attractive alternative to personal loans - ask opportunity seekers money in your company in exchange for a portion of the profits to invest. While it may cost more in the long run, this means that you will lend money without a loan will be repaid, whether your company makes a profit or not.

Venture Capital.

Venture capital is the "big" option - you should really be considered only if yourHome Business Concept technology focus and could make a bigger profit if you had the better hardware. Venture investors look first and foremost that the potential to grow really big really fast making it a top company money, but they also want to know that all those involved and confident.

Approaching a venture capitalist is much like approaching a bank to ask for a loan, unless you will need much more convincing. The person who will fulfill you, aExperts in what industry you are planning to give, and they will run a mile if you seem not hundred percent sure of everything. Be sure to research any venture capital firm, before going to meet with them to see what they are for themselves and their existing customers to search.

Note that you have cheated if they ever ask you to pay anything, and careful with someone who insists that they did not file a NDA (Privacy is sign-declaration) before they see your idea - they would be the planning to handit one of the companies have already invested in.

The competition for venture capital funding must be prepared to hard. Really, the best way to get it is to build a good version of your company's opportunity for asylum seekers, on a small scale, and then wait until they come to you. Also you should be aware that accepting venture capital financing of venture capitalists say, a serious and how your company will be run is. They will try to force you to grow the company as large aspossible, before cashing in some way, whether it is a sale or selling shares. It will effectively take over your company and perhaps help you too rich - not too much fun when you are out to start their own business and work away from the typical corporate fashion.

Angel investors.

Angel investors are like VCs on a much smaller scale. They are "real people" - people who invest in smaller companies, has become primarily with great potential to become a topmoney making business. For home businesses are angel investors a much better idea than venture capitalists.

Angels tend to behave more like a partner. They look for business opportunity seekers. They will invest about half of the start-up funds, and then take a personal role in the day to day running of the business. This is in contrast to venture capital companies, which have a tendency to be faceless, and you demand in writing that it more profitable. A business angel bringswith them experience and knowledge as well as money, and they can be a great asset for your company.

But you realize that they are in this to make a big profit - if you need to build your business need with the help of an angel investor, you will be able to show how they can go to get twice as much from the business in her set, and how quickly. This does not necessarily mean that your company needs to grow quickly into a top company to make money, but it meansthat what you plan to spend their money in order to meet the needs of some kind of tool for making back much more than the original investment over a relatively short period of time.

Staying Independent.

Of course the best way to avoid to stay completely independent, to accept any investment from outside. If you really need the funding, but there are still some opportunities for him and to remain as independent as you can.

Make sure that you keep at least 51% of your company. But many investors, you, you need to keep hold of 51%, otherwise it is not your thing anymore. Do not you like to entering some kind of big system where you are lucky and you have to play by the rules of these people - if you have a really good business plan, feel they are the ones who, if They beg the applicant an opportunity for the business opportunity to invest for them a good return on investment. If all else fails, you might be able to convince your family and friends to also invest in far betterTerms.

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Business and Venture Capitalists

As an entrepreneur interested in start-up investment and at the same time is a person with the risk that investments are involved concerned, you'd better know the industry inside and out. Venture capital will be issued by private banks, investment banks, etc. are investing venture capital funds by entrepreneurs / professionals who are interested in expanding businesses for reasons of high interest rates. There are lots of factors are taken into accountbefore the start of a new company, some of them:

· Work premises

· Machines

Fund Products

· Other assets and liabilities

Well-managed venture capital firms are generally private partnerships between private companies, wealthy entrepreneurs and venture capitalists themselves funded. Lets get familiar with some of the terms by which the financing of start-up are defining companies that:

Venture Capital: This is a type of equity investment generally suited forStart-up companies and growing businesses.

Venture Capitalists: The term venture capital means financing an early stage company, the higher risk investments with potential for superior returns is connected. The person responsible for such investments as venture capitalists known.

Angel Investor: A person providing venture capital for start-up companies, often referred to as an angel investor. Angel investors are entrepreneurs who look for higher returns compared totraditional investments.

When it comes to obtaining money and funds, there are many banks that are willing to accept a certain sum of money from the available packages to be paid. Then there are venture capitalists and angel investors who invest in the interests of big profits.

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How to Contact Venture Capitalists Cold

One of the ways you can get investors will be cold by contact with them. This may be the only option for some people who hitherto may not have the connections that others may have in social networks. This can also be the most challenging form of contact with investors. There are tips for cold contacting investors, and the best way to do it by sending them e-mails.

How do you prepare your e-mail

If you are an investor cold contact, you need to know that you do notinvestor and know the best way to do this is by using the firm's website. In many cases, the partner of a firm will not necessarily publish their e-mails to prevent spam. If this is the case, you should call the firm and get the e-mails of partners.

The first e-mail should present your e-mail to the introductory and find out what type of investor that firm. The next thing you need to know is whether theseInvestment firm has the settings that describe your company to meet. Do not give too much information about your business or send your business plan immediately to the investor. This can believe him, that you are trying to sell him a lot, and when you come off as too pushy, you can turn it off.

The first e-mail is primarily to create a contact list of investors. This contact list is for future contacts, if your business plan is finished and you are ready to make thatfirst introduction to your e-mail teaser. If you are an investor for the first time cold e-mail, you should simply ask yourself and let him know that you are looking for an investor with whom you can work and if he would be interested.

If the investor is a reply to your e-mail, then you are ready for the next step. That is, once you have your contact list, you can email each partner a text message via e-mail that has a number of bullets that explain why the interests of investors should beYour company.

How you present your business plan

Do not submit your complete business plan, unless the investor wants to see it. This is not the case submitted by the first contact by e-mail. The teaser and introduction of e-mail is just there to get investors interested in you and to organize a meeting with you face to face. Here is the business plan should be brought. The business plan is typically associated to the face meeting with the investor's face. Beforewith your business plan is your executive summary, which is an overview of your business plan. This is normally a stand-alone document that is about one to three pages long. The summary is in an e-mail will be sent if the investor so wishes.

Slide Presentation

Another thing that investors may ask you, is a slide presentation that explains the highlights of your business plan. This needs much attention to it made to investors in order to catch himseriously. The presentation should take place in a presentation program such as Microsoft PowerPoint or Apple Keynote. The presentation needs to look not only professional but also have all the facts that correspond with the Business Plan. The presentation does not relate to all the fine details of your business plan, but extends to more than the summary.

Another way is to make a cold contact investors by purchasing an installation directory that you may receive a list of allTypes of investors, which you can directly from their service and e-mail contact with the single click of the mouse in most cases.

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Business Angels vs. Venture Capitalists

Do you have these amazing ideas that you are sure you can put into practice and make a living out of your ideas. If so, then more than likely look at the financial aid, to put these ideas into practice. You may think bank loans, credit cards and loans from family and friends are the only options but Business Angels and Venture Capitalists are also a good option to consider.

Business angels are, what they ask you how often people who can work themselvesEntrepreneurs who have made their dream come true, what business they wanted. You now have the experience and financial support to help other entrepreneurs to start their own business how many years ago.

Venture capitalists are very similar to business angels, they are often from a background of a successful business entrepreneurs have made and now want to give back to other entrepreneurs and help them with their financial resources for new business start-upBusiness.

So you ask, what is the difference between them, they are:

Business Angels - Enter the financial help you need when you need it, and invest their own money in your company. If it works within an Angel Network and the Angels will pool together with its investment, and joint research, which they do ever. Angels understanding of the needs of a new company, as they have been there and they therefore offer not only financial assistance, but they can offergood advice, if nobody else is.

Venture Capitalists - Enter the financial help you need when you need it, but it uses money and others have joined in a professionally managed fund. Venture capitalists to take such an active role in the business, they invest in is usually a director or the board of the company.

So if you're after some financial support for the new start-up companies, or even your business, you are fighting not only theOptions:

• Family

• Friends

• Banks

• Loans

• Credit

You have the ability to Capitalist with a business angel or venture. The decision you ever had one, so you'll only want to show your serious use of its aid is to be presented to a well-planned and thorough business plan.

A business plan will be used not only to plan your investor, what are you and your ideas projected returns in the next few years will show itwill be used for you to run your business well. There are others, what were your initial goals, show, and if you succeeded in this and any risks that you planned and if this has actually occurred and if so, you will have to resolve with the removal order of risk.

It should not just put in a drawer and forget about it should be updated regularly. Your business will continue to change and usually beyond your control, and you should reflect on these changes within your organizationPlan. They should have contingency plans to deal with any external influences that would affect your business, and the manner in which you run with it.

You should now a little wiser of the facts, the difference between these and how they can help you.

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Cooperation with private investors and venture capitalists

Money to company from conventional banking sources are very limited over the last few years or so. At the same time, the amount of private capital into the market will be increased. More and more entrepreneurs find it necessary to seek funds from alternative sources such as venture capitalists and private investors. This type of capital is particularly useful when setting up a new company.

There are several sources of private investment money. The largest amounts ofMoney comes from venture capitalist firms. This group of investors, seed money for new or emerging companies in exchange for equity in society. This is a good source of capital for all types of businesses. The venture capitalists are looking for companies with a good idea, good business plans and a high potential for growth. These companies are large and often willing to invest large sums in selected companies. While most companies invest in start-up for specialized money, many alsoprovide mezzanine financing or later the capital.

Angel investors are another source of private investment. They are a kind of venture capital investor, which consists of around ten to one hundred and fifty individual investors, but the average number of seventy to eighty investors in each network. Instead of investing on their own in a business angel investors to form a network, allowing them to diversify their investments. Venture capital firms will generally show a high degree of control anda high yield, 20% or more, but these lenders often require less control and a lower yield.

Private investors are looking for companies to invest in, but generally follow some strict criteria for the selection. To receive money from private investors, you must have a good business plan and creative ideas. Private investors are seeking capital for growth and revenue expected to increase over time and a good management. You can evenTake the background and the personality of the entrepreneur into account. The more charismatic and more entrepreneurs believe they are able to communicate their business, the more likely they will be able to obtain capital through private investment.

Procurement of private capital can be a complicated process. Many venture capital firms and angel investors specialize in certain types of businesses. It can be used for a business owner with a broker working advantageous to find the right companyTarget when you try to raise capital.

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Venture Capitalists - Cash for Shares

Venture capital is a type of private equity, investing works on the basis of liquid assets in companies in exchange for a share of a company. Venture capitalists are, however, offer not only their skills, a company, but also provide for administrative and technical know-how.

Venture capital is very popular among new companies and new businesses. Many of these venture capitalists who invest in your company have a background in CEOs at companies and investment bankers asand connections with other companies, investment companies and finance areas.

Venture Capital is a viable source of financing for a business. Venture capitalists have the opportunity to invest in each phase of the business, whether it be based around well-established companies or investment do not invest in an established company, but more than a rule, a venture capitalist in and ongoing business relationships.

When is comes to the type of companies that venture capitalists are investing in them,free to invest to the economy all they want, although if you look at the development of venture capitalists, you will see that investing the most important companies, venture capitalists are in tech, such as research and development, electronics and high-gaming industry . Venture capitalists also deal in large sums, which often run into millions of dollars.

Most venture capital agreements have a fixed term of ten years and it should be noted that a venture capitalist notSuitable for all entrepreneurs, as not all companies have the opportunity to use the help of a Venture Capitalist. The venture capital market is very selective, a venture capitalist may only be in one in 400 hundred ways to invest that are submitted to them, so if you win a venture capitalist, you must have a well documented to have business plan and must be able to demonstrate how your company be in a position which will bring sufficient capital to the aid of a Venture Capitalisthas been invested in your company.

If a company does not possess the qualities, which is looking for a venture capitalist, as a solid business plan, a good management team, investment and passion from the founders and a good potential for investment before the end of its cycle funds and target - Exit minimum returns of more than 40% per year, it will get easier for you to invest a Venture Capitalist in your company.

A venture capitalist will also address issues such asas:

• Is your product or service profitable?

• Does your company's potential for sustainable growth?

• Does your management team have the ability to exploit this potential and the control of companies through growth spurts?

• Does the possible reward justify the risk of the investment involved?

• Is the potential financial return to meet the criteria for investment by venture capitalists?

Nearly three million people in the UK are employed,Companies backed by venture capital, according to the British Venture Capital Association. Many of these companies may not be in existence without being able to inject cash and advice to venture capitalists.

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Venture Capitalists Prefer Large Established Markets

Many entrepreneurs focus only on bleeding-edge to offer rapidly growing markets in developing their technologies, products or services. This has happened for several reasons:


The perception that fast growing markets have a limited competition,
The ability to detect early foot-hold in order to increase the value of their businesses and
The reality of the difficulties in developing a differentiated, long-term competitive advantage in the major developed markets.

This article describeswhy this market approach is generally too risky for many venture capitalists, and then provides five reasons why venture capitalists prefer large established markets of bleeding-edge, emerging markets.

Emerging Bleeding Edge emerging markets
Often, to distinguish themselves from large, established competitors believe that smaller companies or start-ups that the emerging markets with bleeding edge "technology should be concerned. In general, it is true that thelarger competitors, not into a new emerging market segment is expected to direct that the market is enough volume in order to assist the necessary investments. Moreover, the same large companies are more conservative in their investment philosophy and can afford to wait, because they have to jump the necessary resources and marketing presence in a fast and create their own position in the emerging market. On the other hand, think smaller companies or start-ups, which, if they can establish a footholdin a growing market, it is possible to secure the same start-up company in a strong position to win for them and for market share in a significant exit strategy for its investors, either through IPO (less likely) or is acquired by one larger, more established competitors.

More often than not, comes this "bleeding-edge, emerging market entry strategy with a high degree of risk. The most important risk is that the underlying support for emerging markets"bleeding edge" technology does not develop in a predictable, short-term time frame. In this situation, the technology experts often claim that their target market or market segment, within the next few years and it provides the company with a significant return on investment within a short time. This optimistic view of the world, generally does not consider the time to build up to roll-out of new IT infrastructure or the same new technology with the customer base.More often than not, these one-year period turns out to be five to seven years. This makes it virtually impossible for a small, venture-backed company, which several generations of product development that are necessary before their bleeding-edge target funding supports the movement of large enough volume to make it self-sufficient business model. In many cases, this has the same small high-tech, start-up companies a tremendous amount of secured funding (eg, $ 50M to $ 100M)and can not be sure, additional funds from third-party investors. In this situation, the amount of funding secured substantially outweigh the monetary value of the company or its technology, product or service offering, according to its investors, so you pay the first major company to pennies on the dollar, only by sale of the investment.

This scenario is not unusual. In fact, it is my experience that in the context of high-tech wireless market has happened ismany start-up companies in the digital cellular, Bluetooth, Wireless LAN (WiFi) and WiMAX market. For all these markets, the experts with extensive growth in the immediate short time were projected to develop only the markets over long periods, so that many of the early venture-funded start-up companies that target these markets out of business or to larger competitors for a marginal rating for the company and sold theirInvestors.

That does not mean that there are not many cases developed in which venture-funded, start-up companies "bleeding edge" technology for an emerging market does not ensure a substantial profit for its investors. In the high-tech boom of the late 1990s, many major semiconductor companies have been purchasing small start-ups to hedge their bets on some of the new wireless markets. At that time many of these small companies were estimated to be between $ 200M to be acquired$ 400M. This unheard of ratings, although good for the start-up companies, often tremendous returns for the acquiring company to close these transactions often within one to two years after purchase.

Large established markets with strong growth
A much stronger strategy is to go for start-ups and young companies with unique and groundbreaking technologies to large, established markets with strong growth. This is one of the unknown secrets for obtainingFunding from the venture capital community. The venture capital firms for more, as previously defined, with breakthrough search technology product and service offerings to large and established markets with strong growth potential. While they have large, established markets with strong growth is a significant risk that exists when the need to develop it for the underlying market to support your business model is eliminated. This is generally an undue amountthe risk that many investors are willing to take to ensure their return on investment. In addition to large, established markets, five favorable market conditions have properties as described below.

Reason # 1: The market is large
The market is large. Because of its size, makes this market very attractive for investors and start-up companies establish themselves in the market. The market, which is due to its size, large enough to support one or more new competitors.Therefore, there is the possibility of your company in the market by securing enough support to share on your business model projections. In addition, due to the inherent size of the size of the market, it is not necessary to secure your business to an unrealistic market share, to meet their business objectives. This makes the big market is an excellent investment opportunity and significantly reduces the risk that your company out of control, the size of the market.

Reason # 2:Market is established,
The market is established. This also reduces the risks of looking for your company to the market with your technology, product or give service plan. By being set up, there is a defined story on the market, the competitors and their technological, product and service offerings. Thus the underlying dynamics of competition in the market is well understood, again to eliminate all the unknowns and unforeseen threat that hovers just below the canSurface of smaller, less established markets. By a market already established, your company, many of the risk factors that they need to anticipate, address to the market to be successful.

Reason # 3: The market has high growth expectations
A market with high growth expectations is desirable for two reasons. Firstly, by a strong growth, you can use your company in the long term, the opportunity to be ensured to increase their return on investment. Strong growth alsooffers the opportunity to develop new sub-markets, creating additional growth opportunities for your company. Second, strong growth in a market is very dynamic. That is, they are trying new competitors enter the market and established players are trying to keep their positions. This provides more opportunities for your company a compelling technology, product or service offerings, which are used in order to secure significant market share, develop. The pure dynamics of a growingMarket requires established competitors and new competitors alike to watch the market constantly seeking new ways to create a highly competitive environment.

Reason # 4: The market has a known Customer Base
The fact that large and established, the market has a known customer base. Therefore, you can search your company with its technology, product or service offerings to the established history of the market and determine the needs of your target customers. Moreover, with theestablished customer base, there is always need a strategic, opportunistic customers is not addressed, provides an opportunity to demonstrate your company as a new competitor in the market. In general, customers are always different based on the search for new ways to make their technology, product or service offerings provide himself with one foot in their competition. Even with an established customer base, through the study of the market leaders, and their specificCustomers, market positions and product offerings, it is easy to determine what is necessary to make a company successful in the market.

Reason # 5: The market demands for new customers
Large established, markets with strong growth also attract potential new customers for your technology, product or service offering. Because of its size, growth, and the underlying dynamics, always looking for new customers to establish themselves in the target market. These new customers canbe established competitors or new competitors, but we must always proceed from the fact that it offer opportunities for new customers for your technology, products or services. Very often they have new potential customers, there is under the radar. You can search for strong competition in complementary markets, new venture-funded start-ups or large companies to establish themselves in non-related markets. The problem here is that for large, established markets with strong growth, there is alwayspotential new customers for your technology, product or service offering. The key is to do the research and due diligence to identify these potential new customers.

Since all VCs involve risks are negative, it is worthwhile for entrepreneurs, the markets, the big goal with strong growth. In general, edge, emerging markets, eventually bleeding to be a disappointment - both for the entrepreneurs and their investors, leading to much lower returns for the ventureCapitalists. The five reasons outlined here are the entrepreneurs with the necessary insight that will enable them to choose their target markets of interest will be challenging.



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