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Howard Helfant: Aspects of Venture Capital Funding That Business Owners Should Understand



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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