Alternatives to Capital Ventures

venture_capital_fundingMany times when new businesses are starting out they are not totally familiar with capital ventures or feel that they are not strong enough as a start up company to be able to qualify. Their first inclination is to go after loans through standard institutions, but soon disappointment will set in as they haven’t been able to provide the assets to secure the loan.

Another alternative that some will look at is angel investors. What the requirements are going to be is that you are first looking for more than $25,000 and you already have your prototype built for your product. Also, you have a couple of employees on a board that may not necessarily be getting a great pay but they believe enough in what you were doing to work for near to nothing. Most often angel investors are after a high net worth and will be looking for some type of ownership interest.

Many times entrepreneurs will approach capital venture companies far too early and end up getting refused and do not pursue it any further. There are different types of series when it comes to venture capital funding and the first approach usually when you are ready to raise more than half $1 million: this is what is called a early stage venture capital funding or a series “A” round. You need to make sure that you keep the amount that you need to borrow within the proper realm so that you can go on to other stages if need be.

The key to success with raising capital venture funds or even using any of the other alternatives is to be sure that you are well prepared and ready to meet the criteria. Coming in half prepared is what is going to lead to failure, and often many companies become so disillusioned that their excellent idea and potential growth of their company is dramatically affected to the point were some even give up and close it altogether.