What Makes You Eligible for Venture Capital?

A budding company or one facing major financial crisis can find solution to all its financial hurdles with Venture Capital. Unlike banks, Venture Capital firms are an important source of long-term growth capital.

Venture capital firms and individuals are interested in many of the same factors that influence bankers in their analysis of loan applications from smaller companies. Though banks look at the immediate future of a small company, they are most heavily influenced by its past. Venture capitalists look at the long-term future of the company. Banks are creditors while venture firms are owners. They hold stock in the company, adding their invested capital to its equity base. Therefore, they examine existing or planned products or services and the potential markets for them with extreme care. They invest only in firms they believe can rapidly increase sales and generate substantial profits. Venture capitalists look more closely at the features of the product and the size of the market than do commercial banks.

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