When
making a proposal for venture capital always use reasonable numbers
in your proposed Business Plan. At the same time, you must show that
your business is scalable. That business can become big enough to
attract enough attention.
Venture
capitalists make money by eventually selling their equity interest to
the public on a large scale. They think in terms of hundreds of
millions in potential profits. Your business therefore has to grow
fast in just a few years, in order to be an interesting investment
for them.
There
has to also be what venture capitalists call an ”exit strategy.”
When that eventual public underwriting or IPO, or a sale to a large
corporation can take place. (See
the Earl J. Weinreb NewsHole® comments.)
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