Venture Capital Profile

What do venture capital firms want?

• Companies with proprietary products and services.
• Trademarks, Patents, copyrights, exclusive distributorships are typical traits for a company to be considered for Venture Capital.
• Financial requirements vary but on average Venture capital firms look for exit returns of 20 to 50 percent per year. Which in many cases mean completing a public offering in 3t to seven years.
• Industry preferences and focus are on telecommunications, healthcare, pharmaceuticals, software, hardware, biotechnology, media, consumer products and services.
• Funding is usually done in stages

Seed Stage- Riskiest pre startup money used for feasibility studies, market testing, and forming the business.

Start Up Stage- Funds used to build the company and continue product development

First Stage- Organization is in order funds needed for Marketing or manufacturing

Later stage - Called Mezzanine or Bridge financing

Second Stage Company is fully operational, products or services are being sold funds are needed to expand. Company may not have turned a profit at this stage of development.

Third stage funds are needed for major expansion typically the company has made a profit or is at a breakeven at this point.

• ·Geographic Preferences-Usually within 2-3 hours of the firms office but could as far away as Indonesia or Japan.

           Click here for a listing of venture capital firms.