Venture Financing: The Hard Facts - South Florida Business Broker Russell Cohen

Business Broker Russell Cohen


Venture Financing: The Hard Facts

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.


M & A Source • International Business Brokers Association (IBBA) • Business Brokers of Florida • FICPA • Better Business Bureau *Boca Raton Chamber of Commerce * Davie/Cooper City Chamber of Commerce * Society of Commercial Realtors* Independent Insurance Agents of Broward County* Network Professionals - South Florida Networking Group* 6 Degrees of Golf