How to qualify for venture capital?

28th Nov 2009 by Tobias John Sterling

There's no way to 'qualify' for venture capital -- this is business, not a football tournament! If the question is "what sort of companies do venture capital firms invest in," then the answer is that venture capital firms invest in companies that have the potential to offer them BIG returns on their investment within a short time frame (between three and seven years), either because the company successfully goes public or because it is bought by another company. This more or less dictates that the company be in a high technology industry like biotechnology or IT. It also dictates than the company has an innovative technology with the potential for fast and massive commercial success, in order that a public offering would be successful, or that another company would want to buy it. Also important is having a good management team, preferably with a lot of experience in the industry the company is in.

This answer is the subjective opinion of the writer and not of FinancialAdvisory.com