As the name implies, there is typically a high degree of risk, i.e., the venture. To secure venture capital, you will need a clear sense of where you are going with the company and in most cases, you will need a written business plan. As your partner, the venture capitalist will probably take an active interest in your company's management, finances and operation. For some young companies and some entrepreneurs, the management and financial expertise provided by the venture capitalist will be greatly appreciated and may make the difference between success and failure. As your business advisors and financial intermediaries, we will guide you through the venture capital process and help you find the venture capital you need.
Private placement can range from a simple arrangement to a complex transaction.
As a rule, private placement only involves a few investors and is used to raise a limited amount of capital, in short period of time, at a relative low cost. Unlike a commercial bank loan, you do not pay back the money, and if done correctly, you will not lose control of your company to outside investors. This can save you significant time, money and effort. However, while the Securities Act of 1933 and the Small Business Investment Act of 1980 provided Federal exemptions, you may not be exempt from state registration requirements. To secure private placement capital, you will need a clear sense of where you are going with the company and in most cases, you will need a written business plan.