VC Funding | Businesses dependent on venture capital funds
Every time we have talked about how good is venture capital investment and why startup Funding should consider venture capital funding over angel investors. Everything has a bright side and a downside.
Let's talk about the limitations of venture capital funds Raising.
A high degree of validation is required to secure venture capital funding as funding gets limited in this kind of investment in startups in the more developed phase. Financial data like revenue, and generating sales are required during the process.
The higher the capital invested, the higher the risk associated with it.
Venture capital funds have supported numerous businesses despite the drawback. It is impossible to overestimate the opportunities presented by such Investment Banking Boutique Firms in Mumbai, as many successful business unicorns were first given a boost by venture capital funding.
For this reason alone, venture capital funding continues to be the most in-demand kind of investment, with aspiring business owners looking to such successful firms fueled by investment as:
SPOTIFY
A wonderful example of a company that has achieved global success is Spotify, which was unknown before 2007. Spotify was founded by a venture financing firm that specializes in early-stage, innovative, and rapidly expanding software businesses.
For a roughly 6% ownership, they spent around $4.5 million on Spotify in 2007. After some time, they were able to exit with a nice hefty amount of $370 million.
SNAPCHAT
Startup Funding :When it was launched, college students dominated Snapchat's user base. Snapchat's first investor, Lightspeed Venture Partners, put $480,000 into the startup.
A few months later, Benchmark added another $13.5 million to their investment. As a result of his friendship with Snapchat's founder, one of Benchmark's partners served as a de facto mentor for the budding business.
Comments
Post a Comment