Business

Why You Should Consider Going the Venture Capital Route For Your Business

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Shark Tank Venture Capital
Shark Tank is a perfect example of Venture Capitalism.

You’ve started a business and it’s doing pretty well but your stuck. You’re unsure what to do, you don’t feel like you’ve done anything wrong… you are making a profit but you feel like you don’t have enough capital to really make your business explode. You’re now on your 10th application to Shark Tank to no avail… what now?

Maybe you need to look into Venture Capital.

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What is Venture Capital?

VC is defined as a type of private equity, a form of financing that is provided by firms or funds to small, early-stage, emerging firms that are deemed to have high growth potential, or which have demonstrated high growth terms (in terms of number of employees, annual revenue, or both).

That sounds kind of confusing, right?

Well, if you’ve seen the wildly popular TV Show Shark Tank then you understand what VC is. The Sharks are what’s called Venture Capitalists, and they look to invest their money into businesses, for a percentage of that business. There are a lot more intricacies involved but for the sake of keeping this introductory to VC we’re going to focus on straight equity deals.

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You might be willing to give up a small percentage of your business, in exchange for an infusion of capital that can take your business to the next level!

Some people may ask… why would I want to give up any of my business? Well, the answer is quite simple.

½ of a Watermelon is more than all of a Grape.

There are all types of ways these deals can work. All different ways deals can be structured. The VC route is very difficult to travel alone, I always recommend having a consultant with you as a travel guide.

You may be interested in this and I hope you are. What I will say though as a word of caution. Getting VC can be very difficult. It’s not for every business and it’s not for every entrepreneur. Make sure you are prepared, know your stuff and aren’t afraid to swim with the Sharks.

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Brandon Brooks
Brandon is an entrepreneur focused on helping others start or grow their small businesses through his crowdfunding platform Inventrify.

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