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VC: Venture Capital

VC is the acronym for Venture Capital which is a form of equity investment for companies of all sizes. VC is sought after because of its ability to be more than just an investment. The alternative to VC and other forms of equity investment is debt financing. This is a form of financing where the instead of selling shares of your company to venture capitalists or angel investors you get loans from lending institutions such as banks. However, beyond the obvious differences between debt and equity financing there is another substantial benefit that VC offers over debt financing. With VC you get the knowledge base that the venture capital firm can offer you. These firms work with similar businesses on a day to day basis and they will be able to offer a consulting type role to your businesses. This is an option that is not available with debt financing. With debt financing you get your money, your charged an interest rate and that’s it. With VC on the other hand you get your money and you get the added benefit of adding talent your team. This is an invaluable asset to have.

 

To learn more about the benefits of VC please visit our home page by clicking on the link below

 

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Last updated December 5th,  2006

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