Entrepreneurs, the lifeblood of high-tech companies, cannot concentrate on building their enterprises and products when they must spend most of their time looking for money. Weisman would like to see an organization's thinkers spend 100 percent of their time creating products. The long-run benefit for banks is that some of these emerging companies will grow into tomorrow's great success stories and need a number of additional services. Thus, the transformed financial institution will be there to fulfill its expectations across a wide spectrum of services. The long-term relationship is the key to the exchange for banks, especially given the industry's consolidation and fierce competition.
Venture capitalists play a much different game.
Not only do they provide a significant source of finance, they shoulder a large amount of risk. In doing so, they also actively participate in product development and running the company. Venture capitalists are not financial sharks or high-rollers looking to score a quick buck. They want to make money, of course, but they also must protect their own backers. Of the hundreds of business plans evaluated each year, few get financed.