Factors of Venture Capital Availability 1

Business & Finance
Tutor: None Selected Time limit: 1 Day

What are the major factors that affect the availability of venture financing in the market; how do they affect supply? If Venture Capital dried up in the U.S., what would be the short- and long-term impact on the number of companies started and the overall economy?

Oct 5th, 2015

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Factors that affect availability of venture capital are:

1. Financial projections. One should be able to communicate in depth about his business to the investors, and explain how he see the business growth in the next years.

2. Team. For one to attract investors, you should have a very strong team which can convince the investors to believe in your business.

3. Validation. Since investors focus on validation of ones business, you should make sure that the credibility of your customers is high, such that your investors can communicate with them effectively.

4. Market opportunity. Venture capital is always up-minded on businesses that have a competitive and rapid growth. for example, if your thinking of doing as great company you should too create a big market.

5. Compelling idea. For the investors to fund the enterprenuer, one has to have a very unique idea which hold a great understanding of the focused opportunity and make the investor interested.

Therefore the higher the rates of returns lead to a high desire to supply capital.

if venture capital dried up in US, some of the impacts to the economy are":;

1. Lack of jobs to the entire community because of the people who used to work in such campanies.

2. Dooming of developments like an investment on water projects which nourishes the entire ecosystem.

3.Bankrupty. bankrupty is experienced because the campanies  nolonger pay their interests on their debts.

4. The effectiveness of a company changes whereby one has to raise human funds to fill in the gaps.

5. lastly, the business seem to decline than to grow.

Please let me know if you need any clarification. I'm always happy to answer your questions.
Oct 5th, 2015

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