Are you considering pitching your company to venture capital firms? That can be a great way to get your company’s feet off the ground. However, have you heard of full-service venture firms? They may be more helpful than you think.
Read on to learn why your business needs a full-service venture firm.
Venture Capital: What Is It?
For a startup business to truly make it off the ground, it will likely need a venture capital investment. This kind of investment puts resources and capital into a project or startup that is inherently risky for the investor. However, the system works because when these risks could pay off hugely. It is generally believed that most capital investments fail, but the ones that don’t fail make up for the losses.
The Process of Acquiring Venture Capital
The process of acquiring a venture capitalist is gruesome. By inquiring, you are putting your company, employees, and hard work under the intense microscope of a venture capital firm. They will evaluate your company and your idea thoroughly and eventually decide that your idea is not worth their time, or they will make you an offer.
If you have a good idea on your hands, you can be picky about the firm you go with. Because, in addition to finances, a VC firm’s connections may be just as valuable.
The Levels of Venture Capital Funding
There are multiple levels of venture capital funding, and each one is equally beneficial. It just depends on the stage of growth your company is in at the time. Here is a little bit about each level.
Once a business has made a name for itself and shows real success. A series A investment can help the company expand its growing market and hopefully spike its annual revenue. It is not uncommon for this round of investment to be over $10 million.
Series B investing is all about talent acquisition. Typically investing around $8 million to $10 million, venture capitalists use this money to give businesses the people they need to grow the company to the next level.
At the series C level, companies typically have already proven themselves and are showing signs of true success. When VCs invest at this stage, they seek to perfect the company’s business model in several ways, including talent acquisition, expansion, and revenue growth. Because investment at this level is less risky, investments up to even $100 million are not uncommon.
Seed funding takes place at the earlier stages of a business. Typically, at this point, it is just an idea, and a seed fund investment of $500,000 to $1.5 million will be given to turn it into a full-blown company with a working product or service.
An angel investor is a wealthy individual who likes to invest their personal money in companies through angel groups. These people are often very involved in the inner workings of the company they invest in and typically have a lot to offer. The most prominent examples of angel investors are the investors on the television show Shark Tank.
Full-Service Venture Firm: What Is It?
Receiving investment from a venture capitalist or angel investor is a great thing. But it isn’t going to make success magically walk through the door. Your company still needs to be well-connected and well-informed on what to do and when to do it. This is a lot of pressure, especially with millions of dollars hanging over your head.
This is where a full-service venture firm can really come in handy. The firms not only offer money, but they also offer resources, insights, and a team of skilled executives to help you along the way.
What It Can Do For Your Business
With an influx of finances and the addition of a well-stocked full-service venture firm, your company could reach heights you never thought possible. Whether production facilities, expansion, global reach, or revenue growth, you will have the best possible shot at success.
M13 is one of the best examples of a full-service venture firm. It was founded by Carter Reum and his brother, Courtney Reum. After graduating from Ivy League schools, Carter and his brother spent some time developing their business skills in the real world before starting M13.
This company was founded based on the notion that stars can shine brighter in a group than on their own. Translating this idea to companies, the Reum brothers quickly made a name for themselves in the venture capital industry. Today, the company has experienced wild success, partnering with companies like Ring, Snapchat, Lyft, Bird, and many more.
The Bottom Line
Many businesses start with great ideas and good intentions. However, the founders often don’t have the capital, connections, or knowledge to turn the idea into a successful major corporation. At least, not on the first try. But, great entrepreneurs paired with full-service venture firms can streamline the learning process and create an amazing success story. So, if you run a business and are looking for investments, you should consider pitching to full-service firms. You never know what could happen.