• VC receiver side. Only 6 out of 1000 innovative ideas get funded by venture investors on an average. The main reason for rejection is that though first-time entrepreneurs may have great technology or business ideas they lack skills for converting these ideas into a successful business. To venture capitalists, "ideas are a dime a dozen: only execution skills count."

→ 3Ws of Venture Investing

• VC supplier side. The size of the angel market could potentially become 10 to 20 times larger, however. It is estimated that only 7% of potential business angels invest in start-up ventures. The remaining 93% are virgin angels who would like to invest but don't do it for a number of reasons, which include lack of proposals matching their investment criteria, lack of quality business proposals, lack of trust in the → entrepreneur or → management team, underdeveloped strategy that should have a strong → sustainable competitive advantage , lack of experience in valuating and pricing deals, and lack of experience in due diligence and monitoring.

This equity gap is seen as a problem by many, but this gap is also full of → opportunities.  >>>

Business angels are a source of pre-revenue seed funding and management guidance for start-ups.  Business angels are wealthy individual investors - usually, people who have made their own money as entrepreneurs. Better equipped and more flexible than banks and most capital funds to assess the potential of very young business, they contribute not only equity but also much needed business expertise, offering company hands-on support and advice. Angels bridge the gap between the personal savings of entrepreneurs and the 'early stage' or 'second round' financing which venture capitalists are able to offer... More

Venture Capital Firms

Venture investing is a process by which investors fund early stage, more risk-oriented ventures. Being a principal funding source, venture capital can not finance innovation on its own. Too many VC firms remain unwilling to invest in high-tech start-ups in the early stage, often because they lack the investment appraisal capacity to act as the "first investor". To be fully effective, venture capital must form part of an unbroken investment chain, from seed capital to stock market.

To target and pursue the appropriate professional venture capital providers, it is a must for the venture capital seeker to understand their investment strategy and preferences... More

Corporate Investing

Corporations are a major - and rapidly growing - source of funds for new ventures. In today's → new entrepreneurial economy, the real shareholder value is created by companies whose corporate strategies include well-developed venture strategies.

Partnership between small innovative firms and large corporation is mutually beneficial. While entrepreneurial companies can → discover  technology and market opportunities and move faster to capitalize on them, they can achieve enormous leverage through technology and distribution agreements with large global corporations... More

By now, spinouts, a new form of creating and financing a high-tech company has become more popular. This novel approach has a number of advantages over a merger or acquisition and it plays an increasingly high role for high-tech companies... More

Stock Markets

Stock markets for high growth companies stimulate venture capital activity by offering an 'exit route' of flotation. They offer a means for venture capital funds to realize a return on investment in new companies. Compared with other exit routes, typically an Initial Public Offering (IPO) realizes the greatest return on investment.