The risk capital is theirs. Often the VC firm may even help your chances of success by bringing in outside resources with them that may not have been available to you on your own. They will have experience growing a company very rapidly and know the pitfalls that may be encountered that you would have to learn by trial and error. This program can provide equity financing as well as some debt financing, and management assistance to qualified companies. They will also typically make arrangements that may be more favorable to the business owner than private VC firms might offer.
Venture capital can be a terrific way to raise large amounts of money, in some cases the only way.
Another method of raising the funds necessary to expand a business is through the sale of stock. Going public, the sale of stock through traditional securities exchanges, is often the end result of venture capital investment. It is also far beyond the scope of this article to explain and the typical small business to accomplish without professional help. The level of regulation regarding stock sales is often overwhelming to the typical business owner. There is, however, a federal regulation known as Regulation D or Rule 504, which may provide an opportunity for a collision repair facility.