Venture Capital Myths

Look out, what you read and hear about there being lots of money for starting a business available from Venture Capital (VC) or Angel investment (AI) financing, may not be true...in fact, it is not true! Yes, there is in some cases , VC and AI financing available, but it is not as available as thought. People delving in to start or expand their own business believe that this would be a better way to get financing than having to go through "hoops" that banks require. While the capital comes from different sources than a bank, both VC and AI also have hoops to jump through even more hoops than banks because they are looking for a higher rate of return on their investment and are financing new businesses and taking more risks. But, that said, getting venture capital or an angel investment can be a reality under the right conditions...the most important condition is the submission of a "winning business plan." A winning business plan is not one that can win contests or is the fanciest. It is one that shows caution and optimism in realistic fashion. If they do not see it this way, the chances of obtaining financing is nil.