Many small business owners think of getting venture capitalists for expansion. Businesses that developed using funding provided through venture capital has been popular since the 1980′s. VC investment were peaked during the late 1990s when all the IT bubbles expanded. Today, the market has gradually changed and venture capital providers are not the same as 10 or 15 years ago. Here are two major phenomenons that we see in the current business market.
Large Venture Capital Investment Companies Are Not for Small Businesses
Over the recent decades, a few large investment companies supported and made success a list of famous companies such as eBay, google, facebook, etc. But these type of companies are nowadays more concentrated in funding companies that are in their mid to late stage of development. They typically provide millions of dollars at least on each project, and only to expect these companies to grow exponentially in a short period of time and lead the world industry.
That said, as a small business owner, it would not be easy to seek funds from such companies because it is not easy for the analysts to see potential of your company to become the world’s top, and that is the criteria they are looking for.
Potential Venture Capital Providers for Small Businesses do not understand your industry
Many small business owners find private equity providers either through referral or advertising. But the most likely situation is that the VC, though with enough funding and interested in investment in a small business, does not have enough related knowledge to analyze your business and make a decision.
The only solution here seems to be finding more potential investors, present your business idea to them one by one, until you find one who has knowledge in your industry and would like to invest. But that would cost much time and effort as a searching process. An alternative way is to find a group of investors from various industries and pitch you business to all of them, in which case finding one who understands your business and is willing to invest is much easier.
There are TV programs that provide this opportunity, but the application process could be painful. And most importantly, many people are not comfortable having their business idea broadcasted before it is realized
Now, small business owners have an alternative great choice for pitching their businesses to VC’s. Pitchyourbusiness.ca provides this opportunity for small business owners to meet the VC’s in confidence in an boardroom setup. The VC’s are hand selected to represent an broad range of industry, that makes the perfect venture capital providers for small businesses. Presentation sessions are held in major cities such as Toronto, Montreal, Vancouver and Calgary in Canada.