August 8, 2020  
 
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Venture Capital Funding

 

Venture Capital Management

Venture capital is typically seen as a source of investment funding for growing SMBs. But what else can venture capital management teams bring to the table?

Funding is a major challenge for small businesses.

With banks increasingly reticent to fund startups and growth initiatives, entrepreneurs have found themselves hanging their hopes on venture capitalists, strategic investors, friends & family, and other sources of capital.

Although obtaining venture capital funding can be elusive, too, VCs offer growing companies the opportunity to access a substantial amount of investment capital. Many venture capital firms are willing to invest millions in a company if they believe it has the capacity to deliver explosive ROI on their equity position.

However, cash isn't the only benefit your business can receive from a venture capital firm. Venture capital management groups take an active interest in their investments, giving small business owners additional value from their investment partners.

Here are just some of the benefits your SMB can access through venture capital management

  • Experience. Venture capital management teams are stocked with seasoned business professionals. These men and women have been around the block a few times and are more than happy to contribute their experience to your business.
  • Expertise. Usually, venture capital management groups are comprised of individuals with a diverse area of business specializations. Assuming the venture capital management group you're working with specializes in your industry, it's probable that you'll have access to partners with expertise in your company's areas of weakness.
  • Connections. Venture capitalists are very well connected in their industries. As a growing SMB, you can use all of the industry connections you can get. And since your VC management team has a financial stake in your business, they're usually proactive about using their connections to help you achieve your growth objectives.
  • Synergies. Good venture capital management groups maintain a portfolio of investments with the same market sector. Why? So they can create synergistic relationships between their investments, resulting in across-the-board gains for the VC management team as well as the companies in their portfolio.
  • Respect. Young SMBs can suffer from a lack of respect, simply because they haven't been on the scene as long as their competitors. Venture capital management teams lend their credibility to their investments, giving your business instant standing in your sector and in the SMB community.

Conversation Board

Have you ever had a meeting with a venture capital management team? We welcome your questions, comments and advice regarding venture capital management.


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