It doesn’t have to be hard to get funding from a venture capitalist. With small business financing, it’s about knowing your options and how to qualify. The same goes for venture capital. It’s about knowing what type of startup company a venture capitalist wants to invest in. Your startup company has to qualify for venture capital. It starts with your startup company management team. According to the report How Do Venture Capitalists Make Decisions?, venture capitalists attribute the likelihood of a successful investment to the company management team. A competent company management team is more important to them than the company product, service or technology for sell. That’s only the beginning. What else do you need know? Keeping reading. I’ll educate you on what venture capitalists do and how they identify a potentially successful investment. By the end of this blog, you’ll know if a venture capitalist will invest in your startup company or send you packing.

There are major benefits entrepreneurs can experience by utilizing the equity crowdfunding method to raise capital. However, just like any alternative fundraising option, it also has its drawbacks. One of the first major benefits of this capital raising method is that it enables entrepreneurs that cannot obtain financing elsewhere to fund their business startup. Another major benefit is that it does not require entrepreneurs to give up a large amount of equity in their company, allowing them to retain significant ownership.3  People who want to invest in a company via equity crowdfunding campaigns can also benefit in that they do not have to be highly sophisticated investors to invest.