Obtaining venture capital
- How do I find people who would be prepared to put venture capital into my business?
- What is the minimum they would be prepared to invest?
- And the maximum?
- What is the difference between a venture capitalist and a business angel?
- Would a venture capitalist (or a business angel) be looking for an all-share deal, or would they be willing to put up debt capital as well?
- What sort of a stake would they want to take?
- What rights would they get with the shares?
- How much say would they want in the management of the business?
- Would I have to give them a seat on the board?
- How long would they want to hold the investment?
- How can I best plan to control the impact a future sale is likely to have on the business?
- What happens if things go wrong - for example, if they invest, but I subsequently find I cannot comply with the agreed terms?
- Will I be able to go back to the same people for more money in the future?
- Will I be able to go back to different people for more money in the future?
- What is mezzanine finance?
- What sort of information do I have to provide when I go looking for venture capital?
- I was involved in the past with a company which went into receivership. Will this count against me?
- Will a venture capital firm be looking for all its gain on exit, or will it want income in the meantime?
- Can I restrict who they sell the shares to?
- Can I restrict when they sell the shares - for example, not for at least two years?
- How much growth in value will venture capitalists be looking for, over how long a period?