Many organizations say that they are involved in providing venture capital to entrepreneurs. "Venture capital is the process by which investors fund early stage, more risk-oriented business endeavors. Venture capital typically entails relinquishing some level of ownership/control of the business. The investment is usually in the form of stock or profit-sharing, royalties or capital appreciation of common shares."
Many women don't access venture capital because they start their businesses in the home, use savings to start their business, or don't have many employees. Here are a few characteristics of businesses for which venture capital is a beneficial option:
You want to quickly grow your business to a larger size
Speed to the market is the factor that determines the position and success of your product or service
Your product is commercially viable and it's big enough that it easily translates into cash for a venture capitalist
Venture capitalists have their own list of criteria when selecting prospective businesses to invest in. These criteria often include:
Offers a financial expansion program for companies acquiring facilities that will create or preserve jobs. The 504 Program is provided by the U.S. Small Business Administration.
Provides incentives to banks to make loans to small businesses considered to have higher than average risk. This program is provided by the New Hampshire Business Finance Authority, an organization dedicated to fostering economic development and creating employment across the state.
Another program provided by the U.S. Small Business Administration, the General Guaranteed Loan Program offers up to $1 million in loans, of which up to 75 percent is guaranteed by the Small Business Administration.
Provided by the Business Finance Authority, this program offers loans of $100,000 and up to nontraditional, capital intensive companies. Collateral must have minimum value of 125 percent. The company must also have at least 25 full-time employees.
Offered by the NH International Trade Resource Center, this program offers international trade finance programs including, Working Capital, Export Credit Insurance, Foreign SBA Export Working Capital and Export Express, and Export Marketing Grant Program.
Provided by the NH Community Loan Fund, this program provides loans and equity up to $500,000 to companies with plans for expansion, succession or employment.
Provided by the Business Finance Authority, this program offers a working capital line of credit not to exceed $2 million and guarantee not to exceed 75 percent.
This organization's focus is on Venture Capital. MerchantBanc's goal is to provide its investors with rapidly expanding businesses in which to invest their capital. It does not offer small business loans or start-up funding. Instead it invests venture capital in existing, expanding businesses.