In, the past year, more than 2,000 businesses nationwide received some form of equity investment from venture capital firms. Thousands more had money injected from a growing number of private investors. Venture capital firms provide long term unsecured equity to small companies. Their success is dependent on the growth and profitability of the business. They accept the greater risk of unsecured equity for the chance to participate in the potential increase in the value of the company.
Venture funds raise billions of dollars annually.
High net -worth individuals also frequently participate. Not every investment succeeds, but those that do make up for those that fail. Returns as whole run about 25 percent annually. Venture capital companies and Angel Investors need the same information in order to make a sound investment decision. They want to see a business plan, supportable financial projections, and a qualified team that can implement the project.