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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…

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
  businesses.
• 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.