SC Capital Access
Venture Capital
A Venture Capital is "money provided by investors to startup firms and small businessese with perceived long-term growth potential. This is a very important source of funding for startups that do not have access to capital markets. It typically entails high risk for the investor, but it has the potential for above-average returns.
Venture Capital can also include managerial and technical expertise. Most venture capital comes from a group of wealthy investors, investment banks and other financial institutions that pool such investments or partnerships. This form of raising capital is popular among new companies or ventures with limited operating history, which cannot raise funds by issuing debt. The downside for entrepreneurs is that venture capitalists usually get a say in company decisions, in addition to a portion of the equity.
Summary:
Venture capitalists invest in startup companies that offer the possibility of profit but with no guarantee the company will make one. They tend to make higher volume investments than do angel investors, and may likely take a larger consulting and management role, as well.
Pros:
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VC Firms have deep pockets
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VC Firms have a well established network of other potential investors
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Typically between $0.5 and 5 Million
Cons:
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prefer to invest in start-ups in the more advanced stages of business, typically those who are already in business and ready to scale up