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Venture capitalists only fund about 3,000 companies per year, and only a quarter of those
companies are in the seed or start-up stage. In fact, the odds that a start-up company
will get venture capital money are about 1 in 4,000. |
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What does all this Mean? |
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This tells us only one thing. The public perception of venture capital is extremely skewed. |
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Taking it a step further, we surveyed over three thousand venture capital firms and angel investment groups late last year. The objective was to fully understand the perception of the investors as opposed to the companies seeking capital. |
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We found the following facts to be troubling: |
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Over 90% of all businesses are not prepared to seek financing when they do. |
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Only 16% of the companies funded are within the first two years of business. |
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Over 95% of the businesses are not successful in obtaining financing the first time out. |
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What is wrong with this Picture? |
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The truth is a lot of things are wrong with it, but ultimately the amount of companies seeking capital are exponentially more than the amount of capital available to them. |
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In order to be fully prepared for engaging in outside financing, a company must completely understand the process involved, and furthermore understand that not even the best business plan or flashy PowerPoint presentation is going to make up for your company not being self sufficient, with strong management, and long term potential. |
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While we do not solicit clients for the purposes of representing them in obtaining capital, we do work with a large network of capital sources, and have the ability to prepare your company for that process. Should you wish to discuss this process in more detail, feel free to give us a call and we can tell you what to look out for, and if there is any way we can help. |
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