2. WHAT IS VENTURE
CAPITALIST
Venture Capitalist are individuals or firms
Invest in high growth and large return on investment.
Guidance and Mentorship to startups.
large potential market, unique & defensible value
proposition
Clear path to Profitability.
V.C typically invest in early-stage companies & startup.
What is
VC?
3. Types Of Venture
Capital
Pre-Seed
The founders try to turn an idea into a concrete
business plan. To secure early funding and
mentorship.
Seed Funding
The point where a new business seeks to
launch its first product. There are no revenue
streams yet, the company will need VCs to
fund all of its operations.
Early-Stage Funding
Once a business has developed a product, it
will need additional capital to ramp up
production and sales before it can become self-
funding
4. Finance New Ventures
High Risk
Lack Of Liquidity
FEATURES OF V.C
Equity Participation
Long-Term Horizon
Participation In Management
5. Pros & Cons Of Venture Capital
Pros
Opportunity for Expansion of
company
Companies do not need cash flow or
assets to secure VC funding.
Provide mentoring and networking
services
Cons
VCs tend to demand a large share of
company equity.
losing creative control as their investors
demand immediate returns.
VCs may also pressure a company to exit
their investment rather than pursue long-
term growth.
