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Start Ups and Emerging Companies – 101: Venture Capital

January 14, 2013

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Venture Capital involves the funding of emerging companies with a high potential of success, but which are too early (and risky) for traditional bank or institutional financing.  Venture Capital typically comes into play after the company has received lesser funding from other Private Equity sources, such as Friends and Family, Angel Investment, or other seed funding.  Venture Capital infusions can be substantial, and before investing, the Venture Capital firm will typically want other Private Equity investors to have some "skin in the game".  The firm will also want to see that the company is working toward metrics that show a high probability of success.  Because of the risk associated with substantial investment in early stage technology or concepts, the founders should expect to give up a substantial equity position in the company to the Venture Capital investors.  The founders may also be required to give up control (or partial control) over company operations.

For more information, please contact:

Derek Ridgway

925-746-8484 Direct Phone
925-746-8493 Fax

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