Question

1- How does a startup begin to seek viable VC funding sources

2- Where the trends in the VC industry are heading in the international market, US economy and growth, and global partnership trends.   

3- How can a new venture position tier VC portfolio strategy?

Answer 1

1. Any startup which is about to seek Venture Capital should hold a plan, a business model, product design and development, a team and a location it decides to start from. Apart from other alternatives like bootstrapping(getting funded by self) or by choosing loan from a bank, Venture capital is most prominent source where an entrepreneur can get funded. In order to seek the same, one must make a detailed plan along with it's capital requirements, budget plans to demonstrate what product or service they are going to start offering to the public, they are expected to demonstrate the product uniqueness, desirability to the public and how do they promote their product to reach most of the public. They also need to demonstrate the skills they have, and relevant experience they hold. Depending on the market opportunities, threats and strength of the business model, the angel investors may offer them at their desired percentage of profit expectations, where the entrepreneurs may or may not accept the funding at the same expectations. This is the most traditional way of seeking funds from the Venture Capitalists.

2. The trends now these days are followed upon coming up with the funds where it need not necessarily go for the entire business funding or by the sale of percentage and making profit by it. The Angel investors are also open for the bids where it acts like injecting the capital via few smaller to bigger deals. The business may agree with the VC's for fewer deals where the other latter deals would've closed on a positive momentum. In other cases, trend is followed by getting the fund directly listed into the IPO. From the very second quarter of 2019, the Venture capitalists have been showing progress towards driving the US economy growth. Around $25 Billion has been on rise in the fund deployment in the US global partnership businesses.

3. Business start ups can intake the Venture capital to seed into their business portfolio holdings. The business can make loss and can make a gain where this can have a direct impact on the portfolio holdings. But this doesn't make any difference to the angel investor who has provided the funds, whether the business can make it or drop it, in the end the promised deal shall be closed by the entrepreneur by all means. The funds directly be invested into the portfolio with the specific investment strategy and either rises the expected returns or generates loss. Basically the new ventures position the portfolio in it's seeding stage and expects the company to generate revenue on a consistent basis as the company would still be in the process of promoting it's product to be fit into the market. And as it grows, the fund deployment increases and thus the stage may grow from seeding to evolving stage, more funds can be deployed with the help of Venture Capital which is again subjective and decision are made by the Management.