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Many entrepreneurs find themselves in need of capital to start a business or to keep a business in operation. The problem is they have no idea where to look for venture capital money and don’t have the contacts to be introduced to investors.
In Inside Secrets to Venture Capital (John Wiley & Sons Inc. $34.95), Brian E. Hill and Dee Power give numerous tips and advice on successfully obtaining elusive venture financing. The two share comments and opinions from CEOs and entrepreneurs who were successful in raising funds for their businesses and the routes they took to reach their goals.
There’s no shortage of funding. According to information from Venture Economics and the National Venture Capital Association, venture capital funds are raising more capital than ever before. In just the second quarter of 2000, 80 funds in the United States raised $17.1 billion, an average of $200 million per fund. They are growing because of the number of venture funds that received excellent returns in their portfolios. The number of those seeking funds is also on the rise, making competition relentless but not impossible.
The authors spent three years collecting data, opinions, and statistics from more than 250 venture capital firms, including some of the world’s largest.
They found that entrepreneurs worry about:
- Whether they can obtain capital for their companies.
- Where and from whom this capital will come.
- Whether they are taking too long to find capital, resulting in their business suffering.
- The business being taken over by venture capitalists.
The authors further explain how to create and present a professional business plan that will attract venture capitalists, organize a quality management team to attract investors, and how to avoid scams and rip-offs.