What is venture capital funding? You hear it mentioned a lot in the business pages and online, but many people are not really familiar with the process and benefits of venture capitalisation. If you look around the Internet you’ll find a lot of sites full of VC jargon, but rarely a coherent explanation of venture capital itself. We would like to break through the jargon and help companies understand how venture capitalisation can help them, and how providing venture capital helps our company grow.
It Starts With A Seed
Every year potential entrepreneurs come up with thousands of great ideas, but most of them never make it to the market. The reason is that an idea does not provide income, and the fact is that it takes a great deal of money to take even the best idea and turn it into the basis of a successful company.
This is why the most common form of venture capitalisation is called “seed funding.” Quite simply it provides the money needed to grow your company into a position where it can bring your ideas to market.Typically, this happens once a concept has been deeply thought through and efforts have started to turn it into a reality. That means the company has a business plan, a realistic explanation of why the idea can succeed, and has proven that they have the expertise to actually create the product or service.
If a company has reached this level, they generally need money to hire new employees, pay for marketing efforts, and start signing contracts and making contacts. Otherwise the company will go out of business before it can become successful. A venture capital firm like VCFAustralia provides this money in return for the chance to profit from the eventual success of your product or service concept.
A Focus On Australia
VCFAustralia focuses on Australian companies because we believe that our ideas are fully capable of competing against any Silicon Valley startups when given the chance. We also understand Australian business culture and can speak your language. And our experience gives us a deep understanding of the unique challenges involved in Australian business law.
Our primary goal is to put Australian companies on the map and make them competitive in the global marketplace.
A Guiding Hand
In addition to providing capital, a success venture capital firm also lends their experience and guidance to the firms they invest in. VCFAustralia understands that no one can be a master of every part of the corporate experience. Having a great idea doesn’t make you a marketing or legal expert, and doesn’t teach you about how to navigate international business waters.
We have the expertise to provide you with rock-solid advice and guidance. Intellectual investment is, after all, just as important as capital investment when it comes to helping a company grow into a successful global corporation.
Why Capitalise Startup Companies?
Providing venture capital is not a charity service. While we are well intentioned, our goal is to profit from our relationship with your firm. The truth is, the ROI for venture capital can be far higher than any other type of investment.
In exchange for capitalisation and our business experience, we take an equity stake in the company. We also insist on board representation, so we can effectively monitor our investment as your company starts to grow. The end result is that when you become successful, we can profit from our stake in your company. This means we are very motivated to help you succeed.
Is Venture Capital Right For Your Company?
This is a question that only the founders themselves can answer. If you are interested in exploring your options, VCFAustralia would love to hear from you.