Sunday, May 20, 2012

Venture Capital

Venture capital (VC) is financial capital provided to early-stage, high-potential, high-risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually has a novel technology or business model in high technology industries, such as biotechnology, IT, software, etc. The typical venture capital investment occurs after the seed funding round as growth funding round (also referred as Series A round) in the interest of generating a return through an eventual realization event, such as an IPO or trade sale of the company. It is important to note that venture capital is a subset of private equity. Therefore all venture capital is private equity, but not all private equity is venture capital.[1]

http://en.wikipedia.org/wiki/Venture_capital

Tips

Everyone should start networking as soon as possible.

Networking is an ability that employs and hones research and communication skills. It is a powerful tool to discover opportunities for both work and personal ventures. Through networking sessions, you get to meet a wide range of personnel from various industries eager to explore possibilities and solutions beneficial to both parties.

Networking has been proven to be a key factor of entrepreneurial success. However, to maximize the full potential of this tool, one needs to be discerning in his/her selection of networking sessions. Attend sessions you deem most advantageous to your cause, thereby, reducing time wastage in moot opportunities. Alternatively, to further ensure effective networking, you can create your own networking groups and regulate the personnel attending.

Another critical determinant an aspiring entrepreneur has to take into consideration during networking sessions is to ascertain the risks involved in proposed ventures. Do not jump into any without adequate research. Doing your homework will equip you better in making informed decisions. In time, you will also realize that high-risk businesses do not necessarily guarantee high returns. Sometimes, a low-risk venture can generate high returns.

Successful businesses often rely on strong networking abilities. Mastering the skill early will, more often than not, increase your chances of making it good in business. With CEOD, you have a learning platform to seek partners, ask questions and maximize your potential as an individual or/and as a company.

Start networking today.