What the venture capital firms (investors) search for?

Banks are only creditors. They are interested in quality of products or services and their prospects in the market for reception of a certain guarantee that these items or services can provide steady sales and give the sufficient income, to return the credit and to pay percent. And they, as well as investors, demand to present the business plan, to be convinced that directors estimate all and plan correctly. If the credit doesn’t come back or percent the creditor bank implements the guarantees given by the enterprise aren’t paid.

Venture capital firms are the same owners. They invest the capital in the enterprise, without receiving any guarantees. Therefore it is natural that they research the produced either planned goods or services and the potential markets of their realization with extreme carefulness.

They invest the capital only when will believe and will be convinced that the enterprise can quickly increase sales and produce essential profit. The business plan also should prove. The Venture capital investment is a risky event for the investor also because it is very difficult to estimate the future cost of the enterprise at the earliest stage. Therefore, the majority of Venture Investors establishes strict requirements to form and content inquiry about investment and the business plan, competence of the managerial personnel and also wants to find in the project something special that would make this project attractive.

The project should be favorable not only to the applicant, but first of all to the investor, and the request, the resume of the project and the business plan should the investor prove it in the most attractive to the investor. They also use strict estimate and checking procedures to reduce risks as their investments aren’t protected in case of enterprise failure.

The first barrier to the applicant is properly constituted the business plan and the resume, following — to sustain check of positions of the business plan. To break the first barrier, it is necessary to prepare the business plan and the resume in that form which is accepted in the West and clear to the investor, differently it will not be simple to read it and it simply doesn’t consider any intermediate inquiries and doesn’t answer them.

To break the second barrier, it is necessary not only to accompany the business plan proofs of statements resulted in it, but in every possible way to promote any check, from representation of additional materials before representation of names, addresses, phones and etc. for contacts to other persons and the enterprises able to confirm the information represented by you.

So this is pretty understandable so far and if you are interesting in it just keep reading the following parts.

The days when governments have been flooding people with all types of grants are over. At least for a while. But that does not imply that you should get rid of the idea of getting small business grants.

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Visit this blog for more practical tips about grants, how to apply for grants, grant samples, traps and ticks of the grants. This info will help you to get small business grants or any other grants easier.