Where Businesses Come to Grow: To Venture or Not To Venture
Often times, minority business owners are reluctant to apply for business loans for fear of receiving too little credit, having to pay outrageous interest rates, putting up higher collateral, or total rejection. So, the question is asked – what can you do as a business owner to get the necessary working capital to take your business towards the next level of success?
Venture capital (VC) may be the solution. Simply put, VC is a type of private equity - a form of financing that is provided by firms or funds to small, emerging firms that show high growth potential. VC financing can take the form of debt, equity, or mezzanine financing. Interested in learning more? Visit our website, and discover helpful tips and advice.
3 Insights on What It Takes to Get Funded
1. Do Your Homework
With access to millions of business resources just a click away, research which venture capitalist firms are suited to help like-minded businesses, such as yours. A well prepared business plan along with detailed financial projections/statements will have a significant positive impact on your funding request.
2. Build the Relationship
VC firms have specific requirements in terms of industry preference and their investment strategy. Building relationships to find the right investor for your type of business is paramount. Attending industry conferences and scheduling meetings with potential capital providers is a good first step.
3. Close the Deal
VC’s will examine your company’s revenue size, growth potential, and return on investment when considering a potential deal. It is up to you to present a compelling reason why your business is a good candidate to receive capital. Having an impressive pitch deck is key in presenting your business and securing an investment.
We’re Here to Ensure Your Success
Funded by the Minority Business Development Agency – our national network of MBDA Business Centers provide customized business development services that help your company gain greater access to capital, markets, and contract opportunities. Locate your nearest Center and speak with a business expert today. Or visit us at www.mbda.gov.
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