venture capital knowledge

[weezergirl]

Hey I was looking at a job description and it said must have knowledge of venture capital. Like what do you think I would have to know? Does anybody know anything about venture capital? Just wondering, thanks.

 

[PsychoAndy]

IIRC, venture capitalism is the concept of throwing insane sums of money at some techincal types so that they can develop a technology that may or may not be profitable, but just because it has cool buzzwords and is the "in" thing

think of it this way. have you given your little cousin a $5 loan so he could build a potato gun, cause it was the fad at the time. but the fad went out of favor and he/she/it spent your $5 on candy? if so, you've got experience

 

[gotsmack]

what is the job title? worst case: you have to know how to put together a business plan and have indepth knowledge of the financials of a particular industry.




My B. plan is about 35% complete and after that I'm going to have to liif for VCs I wonder what will get done first the B plan or finals?

 

[fastz28]

VCs take money from their investors and invest the funds into ventures (businesses). In return for their investment, they get equity (shares) in your company.

Ex. VC invest $10 in your company in exchange for 25% of the company. When/if your company makes money and is worth $400, they can cash in and their $10 investment is now worth $100.

That's pretty simplified but you get the idea.

<------ making pitch to a VC in 2 weeks about my venture. Anybody got $5 m to invest?

 

[SALvation]

I can tell you the nightmare of pitching to VC's to get their money.

Mercario <-- My company (shameless plug)

 

[SALvation]

BTW, Good luck guys pitching to VCs. Just some advice:

VCs will not even call you back if your product or at least a prototype is not already built. That's just for a callback.

If you want their money. You need to show them a list of current clients and have revenue of at least 10-15k a month. Although in my mind that kinda defeats the purpose since if you had that, why would you want VC money? But hey, those numbers are straight from many VCs' mouths.

Good luck again.

 

[gotsmack]

yea that does sound kinda stuipd. If you can get that kinda revenue stream you might as well get a loan from the bank.