If you want to know how to find the right venture company for your funding needs, this article is really going to help.

 

Why Look for Venture Company Funding?

American businesses and capitalism can be likened to a 3-legged stool.

If you only have one or 2 of the legs supporting the seating area, the individual or business putting their weight on that stool will be unstable and collapse.

Therefore, all 3 legs must be proportionately spread out to bear the weight of what is being placed upon them.


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For the three-legged business stool, those 3 legs are invention, innovation, and investment.

The importance of money as it relates to the startup success of a business is critical. Cash to a business can be likened to gasoline pumping through the fuel system of an automobile.

The vehicle may look good and be equipped with all the bells and whistles but if there is no fuel or the fuel tank is running on vapors, the business cannot succeed.

The business to succeed and realize its full potential is hampered.

Fortunately, there are opportunities for a business to obtain the needed startup monies required to begin on its road to being a successful business.

Some of those resources could include money from family members, utilizing one’s assets, investment by friends, or traditional loans.

One other way of obtaining investment money for your business venture is through venture companies.

Related: What is Venture Financing and everything else you need to know!

 

What Is a Venture Company?

A venture capital company is a business that invests capital resources in a new or startup business.

The investment of a venture company is not just restricted to providing money but also can include consulting services for the new business as well as providing technical expertise.

A venture capital company is comprised of other investors who expect a significant return on the money that they invest with these venture firms.

Of course, the venture company will want to hear about the business, the significant role or unique role that the company will provide to a potential customer base, a thorough business plan, delineation of outcomes, etc.

Typically, a venture company will invest in businesses that have the significant potential of providing a significant return on their investment.

In return for any investments made, the expectation of the venture company will be at the minimum an average return but with expectations of an even higher return on their investment.

 

Personal Story

A rather humorous story involves my attempts to kick off a special seasonal event that was being held with our not-for-profit.

We were to meet on the steps of City Hall and announce to the community that our drive was beginning.

It was a great idea, we gathered together all of the dignitaries, made all the appropriate arrangements, and even had the media there to cover the event.

I had even thought about the public address system that we are going to use and had lined up the microphone stand, speakers, microphone, etc.

Everything was all set to go.

However, one minor detail.

When hooking up the extension cord to the amplification equipment the sinking feeling in my stomach was exacerbated as I realize there was no power outlet to connect the cord to.

Consequently, the event went on, people stood in front of the microphone, but there was no amplification of their talk or their speeches.

Similarly, in the business world, we can have the greatest ideas have everything ready to go, and be innovative in our approach but if there is no money to power the innovation and imagination; it’s just a powerless exercise.

 

11 Ways and Tips for Finding the Right Venture Company

 

1. Twitter

Many venture companies have significant social media platforms. Consequently, one of the best ways to begin the introduction process of finding a venture company would be through Twitter.

This platform can start a conversation and dialogue with the company’s representatives.

 

2. Linkedin

Another golden opportunity to utilize in linking up with venture capital firms is through LinkedIn.

Through this networking platform, you can begin to be noticed by venture firms and vice versa.

 

3. Local Events

A critical strategy that is important for the individual to connect with venture capital firms is to attend a variety of events.

Usually, these events are a magnet for venture capitalists as they are looking for new investment opportunities.

 

4. Industry Events

Another forum in which venture companies attend frequently is what is known as industry events.

Examples of an industry event could be a variety of conferences that are held in several cities.

These conferences often highlight the newest caveats in the technological world.

 

5. Individualize

An important factor to keep in mind when approaching a venture firm is not to use the cookie-cutter approach.

In other words, your approach and focus on the various companies should be individualized.

One’s homework on looking at approaching a venture firm is to understand what their focus on investment may be and whether your company can resonate with their investment strategies

 

6. Email 

Many companies list their leadership and provide, for each leadership member, their contact information.

A strong possibility of connecting with one of these leaders is still through the e-mail system.

Of course, rather than unloading the entire idea business idea on them through the e-mail, simply submit an email with a teaser tagline and briefly introduce yourself.

Hopefully, one’s creativity and imagination will spark an interest and they may reach out to you.

 

7. Attention-Getting 

If looking for venture capital, it is important to distinguish one’s self from the rest of the competition for those investment dollars.

This can be accomplished by hosting a seminar in which one of the speakers may be an identifiable business owner who may wish to discuss their road to success.

Also, this would add more power to the invitation sent to a variety of venture capital companies to attend if they knew that this individual had agreed to be part of your steering committee or in an advisory capacity on your new venture.

Related: What is Pre-Seed Funding and everything else you need to know!

 

8. Leverage 

Another excellent way of reaching out to a venture company is by leveraging any potential common contacts that you may have with leadership within these companies.

By leveraging your business interaction with those that the company may know, an inroad may be able to be traveled on to get in front of the decision-makers with your idea.

 

 

9. Match 

When endeavoring to find the right venture company, it is important to know what their investors are looking for.

In other words, some investors in venture companies have specific guidelines that they wish for the venture company to adhere to.

Some of those guidelines include where they want their investment dollars to be invested as it relates to the geographical location.

Also, the investors instruct the venture company on how they want their money invested.

Therefore, as part of the agreement terms, they only want to invest in certain segments of the business world.

 

10. Conflicts 

When doing one’s research on where to find the appropriate venture company it is important to know what businesses they have invested in and what those businesses do.


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Often, venture companies frown on multiple investments in the same service area to avoid competition with their investment.

 

11. Deadline 

In regards to finding the appropriate venture company to inquire about an investment opportunity, it is always important to have one’s “elevator pitch” down to a fine art.

Also, it is important to express to the venture company a deadline.

This deadline may be real or arbitrary.

The important thing is not to allow the decision to linger but take advantage of the energized moment.

 

10 Best Venture Companies to Consider

 

1. Bessmer Venture Partners

Headquartered in Silicon Valley, CA this venture capital firm has assets of $5,000,000,000.

Their focus on venture projects includes healthcare startups across the globe.

Click here to check out Bessmer Venture Partners

 

2. Greycroft

This venture capital company’s focus is on the Internet and the development of mobile platforms.

Since their inception, 200 investments have been made and their assets are approximately $2,000,000,000.

This company is located in New York.

Click here to check out Greycroft

 

3. Bain Capital Venture

The focus of this venture capital firm is on startup businesses that are fully utilizing technology to disrupt old types of thinking and create new thinking over standardized markets.

Their assets are approximated to be $105,000,000,000.

This company is situated in Palo Alto, California.

Click here to check out Bain Capital Venture

 

4. Andreessen Horowitz

Founded in 2009 and headquartered in Menlo Park, California, this company has close to $16.6 billion in assets.

Their focus is on technology and on innovative and bold entrepreneurs who are looking to the future through the full implantation of technology.

Click here to check out Andreessen Horowitz

Check out the following related articles, for more:

 

5. Canaan Partners

With $5,000,000,000 in assets, this venture company’s focus is on technology and the healthcare industry.

Formed as a company in 1987, Canaan Partners is located in San Francisco, California.

Click here to check out Canaan Partners

 

6. Anthemis

Headquartered in London England, and founded in 2010, this venture capital firm is committed to enacting change in financial services provided by a variety of businesses and startups.

Click here to check out Anthemis

 

7. General Catalyst

Founded in the year 2000 this company has $3.75 billion in capital commitments.

Those commitments are with entrepreneurs and startup leaders. Many of their investments are repeat investments with those individuals who have a successful track record.

General Catalyst is headquartered in Cambridge, Massachusetts.

Click here to check out General Catalyst

 

8. TCV

The focus of this investment company is on the area of technology and associated businesses.

Investments totaling over $11,000,000,000 have been realized by technology companies.

Additionally, this venture company has provided consultation services to guide CEOs through the process of creating Initial Public Offerings.

The company was founded in 1995 and is headquartered in Menlo Park California.

Click here to check out TCV

 

9. Balderton Capital

Headquartered in London England and founded in the year 2000, this venture capital company focus is on technology and serving the geographical area of Europe.

There are 8 funds that they manage that have an estimated asset total of $3,000,000,000.

Click here to check out Balderton Capital

 

10. RRE Ventures

New York City is the headquarters of this capital venture company which was founded in 1994.

They have raised over $2,000,000,000 and this investment money is dedicated and committed to supporting private information technology.

The added laser focus of providing growth in the software development market, World Wide Web, financial services, and other innovative industries.

Click here to check out RRE Ventures

 

Venture Company FAQs

 

Why Do These Firms Call Themselves Venture Capital Firms?

The reason why these firms call themselves venture capital firms is the very definition of venture.

Venture means to dare to do something or go to some destination that may have a element of risk, danger or being unpleasant.

Therefore, because investing in a new company with the possibility of losing one’s investment makes this a risk or a venture.

 

Where Do Venture Capital Firms Get Their Money?

A variety of investors utilize these firms to provide oversight to their investments.

Some of those investors could include:

  • University endowment funds
  • Sovereign wealth funds
  • High net worth individuals

…to name a few.

 

What Is the Anticipated Return to Those Who Are Invested in Venture Firms?

The anticipated return on investors who invest in venture capital firms ranges anywhere from 25% to 35% on those monies.

This return is anticipated yearly over the lifetime of the investment.

 

What Do Venture Capitalists Make Their Decisions Based on?

Venture capitalist companies make their decisions based on several factors and criteria.

Some of those factors include:

  • The management team that has been recruited
  • The business concept and plan,
  • Market opportunity
  • Assessment of risk with the monies that may be provided

 

Conclusion

The success of America’s economy is all about innovation and invention.

The third component of that successful trifecta is an investment.

The reality is not all businesses are qualified for venture capital nor do they need this type of investment.

However, it doesn’t minimize the importance of that business whether it is one employee or thousands.

Business is the engine of America’s economy.

Each successful business empowers other businesses due to the connectivity.


Again, this company has paid $25+ million to members:

SurveyJunkie (only USA, Canada, Australia residents allowed). You can earn money sharing your thoughts. They have already paid $25+ million to their 20+ million members just for sharing their thoughts and opinions. Click here to join SurveyJunkie for FREE


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Apart from being a seasoned Personal Finance expert who has written for top publications around the world, I bring significant personal financial experience. Long story short... through bad financial choices... I found myself $100,000 plus in debt. I was able to dissolve this indebtedness and regain financial solvency. This financial turn around was accomplished through reading, studying and implementing a financial plan. My financial plan included paying down my debt through budgeting, being cognizant of where my financial resources were being spent, changing my attitude about money and understanding the binding chains of the improper use of credit. Today, and for 10 years, I have been debt free and have invested wisely to enjoy my current retirement. This is allowing me to write to help others make, save and grow money wisely!