What is Venture Capital (VC) by Sutter Law a San Francisco Business Law Firm

What is Venture Capital (VC) by Sutter Law a San Francisco Business Law Firm

What is Venture Capital (VC), Investors and Equity? Organic Growth: When your big idea with the small budget needs the extra boost to get to the market place, you figured it was time to take the next step. Your business plan: go big or go home. So far it has panned out well, as your wallet is so full you need an accountant to carry it for you, and you want to reinvest those earnings back into the future of your business. This is speed capital, a small but often risky investment from the pockets of company founders of friends and family. Think of this investment as everything needed to nurture a seed into full bloom (yes—its corny, maybe it’s a seed of corn we’re nurturing here). Seed capital covers the gamut of all expenses needed to start your business before you bring in revenue, hence the risk.  However for those willing to take this leap of faith, the payoff can be immense. Though similar, be careful not to confuse seed capital with angel capital, in which investors (often friends or family) provide a capital investment with a targeted goal of company success. This money is more intended to ensure the progress and reaches of your grass-styling enterprise rather than simply an avenue to increase the investor’s profit; it is an investment backing the entrepreneur more so than the company itself (yes, this is most likely the category into which your mother will fall). So you’ve taken hammer to piggy bank and have seen your former hobby take its first steps as a full-fledged business; you’re risk paid off,...