Frequently Asked Questions on Venture Capital

Frequently Asked Questions

Are internet/technology companies given first priority for funding right now?
Not true. Leading edge technology can be very expensive in terms of development and marketing which makes them difficult to finance.

What's an Angel?
A multi-millionare, often self made. Has cash, business experience and is not ready to retire. The most likely source of seed and early stage capital. There are 20 million prospective angels. They have invested over $20+ billion (almost twice that of all venture capital funds)

Is it true that most investors are ready and willing to invest and fund quickly?
Not true. Most businesses are in the 11th hour crisis by the time they are seeking funding. The time span from the moment the proposal is received, reviewed, approved and funds distributed can be lengthy. It will take from 6 to 8 weeks for a positive response, assuming your proposal, projections, marketing strategy and management team are strong. It is imperative that a well-prepared business proposal be produced in order to have a chance at raising money in that time frame.

We hear that most investors just want to take over and control the company. If we are to retain your services, how can we be assured in preventing this from happening to us?
Remember, the right investor is working twice as hard to find you, than you are trying to find him. A real investor knows that it is not in his or your best interest to try and take control of the company.