Government financing and venture capital financing account for less than one
percent of all new business financing. Sixty-seven percent of all small to
mid-sized businesses are financed by personal saving or friends; thirty-three
percent are financed by lending institutions. The facts about venture capital
financing are especially cold and hard…
- Venture capital is limited to high-growth potential, high capital-absorbing
- Venture capital benefits as few as 1000 businesses a years, and then…
- he average investment is $2.3 million, divided between 3-4 venture capital
funds, which take 40-50-60 percent or more of the business’s equity.
- Venture capital investors expect the business to grow to $25-50 million
within 5 years–at which time the business will go public or be sold.