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 means 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.
