Howard Helfant has years of experience as a venture capital
investor. His background is in marketing consultancy, which he slowly
transitioned into owning and operating several restaurant businesses. He’s used
the success of these firms to get into
venture capital investing, where he’s helped numerous promising start-ups get the funding they require for
success.
Many small business owners don’t have the resources or track
records to secure finances through conventional methods. Thankfully, a thriving
venture capital community has stepped in to address the funding challenges.
However, to tap into that support, business owners need to understand a few
aspects.
Equity and debt
When a bank offers a loan to a small business owner, the bank’s
expectation is to get a return on the financial investment. When a venture
capital investor advances finances to a founder, their expectations tend to be
greater. Typically, the investor will want a stake in ownership of the company,
sometimes with board participation. These investors are interested in equity
because they are looking for significant
returns on their investments.
How much do you need?
Before approaching venture capital investors, founders need to
know how much they require. They need to account for a few things, including
operating costs, a forecast of growth expectations, a realistic valuation of
the enterprise, and a financial buffer for the unprofitable building phase.
Understanding venture
capital funding
Like many investors, Howard Helfant agrees there isn’t a
universal funding procedure. However, the most important step in the process is
establishing contact with a potential investor. Wealthy investors tend to
invest in firms that operate in industries
they are familiar with.
Follow Howard Helfant on Behance: https://www.behance.net/howardhelfant
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