There is no shortage of discussions on the table about Venture Capital and Angel Investing which are both intended to supply endowment or money, where banks have not and will not. Banks by nature don’t have a sense of adventure anymore, the relationship between the banker and client has dramatically waned over the years and so have the opportunities for start-up businesses by means of traditional funding. Dynamic in nature however, creativity cannot be tamed and there will always be a creative ways to get money, to create funding and find the support needed to launch your company.
Venture Capitalists are more than just the big guys with the deep pockets; they are the entities that believe in you when the banks don’t and the backbone of our economy. The initial investment, seen as a risk, is directly related to the perceived potential return or ROI. Basically we are all in business to make money, and investors should want your success more than anyone else. Venture Capitalists have put the people and personality back into business, providing more than just funding but in many cases offering additional resources and mentorship. Independent entrepreneurs and innovators joining forces has successfully thawed the money frozen by banks during the recent recession and have put America’s greatest gift, innovation, back on the front burner, and its hot!
Private investors were more common at the beginning of the 20th century. Private equity was doled out by notable wealthy families such as the Rockefellers, Vanderbilt’s and Warren Buffet, a most intimidating group to get in with. Now virtually anyone with some money stashed can invest in innovation at any level, and the rise of investors looking for ways to spread out their reach of investments are eager to hear pitches and consider investing.
The definition of venture is to expose risk or make a gamble, but it is in the action of venturing that the true nature of venture capitalists exposes itself. The act of venturing is to proceed especially in the face of danger, brave and undeterred. As Erica Jong, the author of Fear of Flying eloquently stated, “The trouble is, if you don’t risk anything, you risk even more.” Passion, purpose and planning all go into a new venture, and like an adventure the outcome is unpredictable, but often the rewards far outweigh the risks.