Venture Capital

In starting a business you can use the help of family, friends, and children. You can use the garage and the basement of quarters. You can borrow furniture and equipment. But after all the resources of family and friends have been obtained, there is still the need for some hard cold cash. It takes a little money to pay for things like raw materials, telephone, postage, letterhead stationery, and possibly some salaries and wages. This start-up money is sometimes referred to as seed money. It may be the most venturesome kind of venture capital.

To improve the probability of success in starting a new business, it takes the right kind of person with the right kind of business concept. More than that, the person should be a particular point along the career path and the business concept should be timely in the context of perceived consumer values as well as current technology. Even with the right person at the right time, and the right business concept at the right time, there is still the need for venture capital to give the new business a chance to win in the marketplace competition.

Venture capital is liquid assets invested in an unproven business. Money placed with a proven business enterprise for its prudent use can be thought of as invested capital. Money placed with any other business enterprise is at risk to a greater or lesser degree and can be thought of as venture capital. There are few enough proven business, and it is easier to identify and describe one of them than it is to try and describe one of the many, many unproven businesses.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Lectures, Line of Sight

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1 Comment (+add yours?)

  1. Frank Stone
    Oct 05, 2009 @ 10:00:05

    A very nice Topic. Thanks alot hope you go for the detail next time!

    Reply

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