Today’s Tip
Best Practice: Venture capital firms want to invest in a winner. Create an award-winning business plan – one that shows rapid high growth
Today’s Article: Access to Capital for Branding – Venture or Equity Capital
Venture capital involves selling a portion of the business in return for money to open or grow the business. In addition, an outside lender is taking an active management role in the business. Most businesses do not fit venture capital requirement, since they do not have a rapid growth potential with sales in the millions. Businesses that meet the above requirement and cannot seek capital from more traditional sources, i.e. public markets and banks look at venture capital.
Advantages to Venture or Equity Capital
1. Open to investing in starts-up and existing businesses
2. Access to not only collateral backed capital, but also non-collateral or operating money
3. Interest in investing locally, regionally, nationally or internationally
4. Business may get more than capital, also personal business expertise
5. Business may get more than capital, access to others in their business network
6. Potential future funding
Disadvantages to Venture or Equity Capital
1. Debt (loan) source of money can be at a higher rate of interest
2. Equity source of money means giving up some ownership in the company
3. An outside individual is now involved in your company – choose wisely
4. Can take time to secure
Venture Capital Selection
National Venture Capital Association
Non-profit organization whose members provide venture capital money and services.
Sources of Venture Capital: Click Here
Young Venture Capital Organizations
New England Venture Network
www.nevnweb.com
New York Private Equity Network
www.nypen.org
Young Venture Capital Association
www.yvca.com
Young Venture Capital Society
www.yvcs.org
Venture Capital Organizations Outside the United States
African Venture Capital Association
http://www.avcanet.com
Australian Private Equity and Venture Capital Association
http://www.avcal.com.au/
Belgian Venturing Association
http://www.bva.be/fb111wrrc623szu1szu203.aspx
Brazilian Private Equity and Venture Capital Association
http://www.abvcap.com.br
British Venture Capital Association
http://www.bvca.co.uk/
Canada’s Private Equity and Venture Capital Association
http://www.cvca.ca/
China Venture Capital Association
http://www.cvca.com.hk/index.asp
Czech Venture Capital and Private Equity Association
www.cvca.cz
European Private Equity & Venture Capital Association
www.evca.eu
Finnish Venture Capital Association
http://www.fvca.fi/
Association Francaise des Investisseurs en Capital
http://www.afic.asso.fr
German Private Equity and Venture Capital Association
http://www.bvk-ev.de
Gulf Venture Capital Association
http://www.gulfvc.com
Hong Kong Venture Capital & Private Equity Association
http://www.hkvca.com.hk
Hungarian Venture Capital Association
http://www.hvca.hu/
Indian Private Equity & Venture Capital Association
http://www.ivca.in
Irish Venture Capital Association
http://www.ivca.ie/
Israel Venture Association
http://www.iva.co.il/
Italian Private Equity and Venture Capital Association
http://www.aifi.it
Japan Venture Capital Association
http://www.jvca.jp/en/
Latin American Venture Capital Association
http://www.lavca.org/
MENA Private Equity Association
http://www.menapea.com
Netherlands Venture Capital Association
http://www.nvp.nl/
The Norwegian Venture Capital & Private Equity Association
www.nvca.no
(Not affiliated with NVCA in the U.S.)
Russian Private Equity & Venture Capital Association
http://www.rvca.ru
Singapore Venture Capital and Private Equity Association
http://www.svca.org.sg
Spanish Venture Capital Association
http://www.ascri.org
Swedish Venture Capital Association
http://www.svca.se
Swiss Private Equity & Corporate Finance Association
http://www.seca.ch
Thai Venture Capital Association
http://www.venturecapital.or.th
Other Venture Capital Organizations
Emerging Markets Private Equity Association
http://www.empea.net
Small Business Investor Alliance
http://www.sbia.org
Action Step: If you have a rapid high growth business that will make millions in a short time and are willing to give up ownership in your company, venture capital may be an option for you. Contact one or more of the associations above.
Additional Resources
More Ways to Access Capital Return to Brand Library Return to Brand Yourself
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