I. What is Venture Capital?
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:

  • Strong management
  • A growing market
  • A good business model
  • Financial payback
  • * Information from the WBC Newsletter

    II. Sources of Venture Capital

    504 Program
    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.

    Contact:

    Witmer Jones
    Phone: (603) 225-1400 ext. 130
     
    Capital Access Program
    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.

    Contact:

    Mike Donahue
    Phone: (603) 271-6458
     
    Capline Program
    Capline is provided by the U.S. Small Business Administration to finance short-term, working-capital needs of businesses.

    Contact:

    Witmer Jones
    Phone: (603) 225-1400 ext. 130
     
    Export Working Capital Program
    This program is provided by the U.S. Small Business Administration and provides up to $1 million for working capital.

    Contact:

    Witmer Jones
    Phone: (603) 225-1400 ext. 130
     
    General Guaranteed Loan Program
    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.

    Contact:

    Witmer Jones
    Phone: (603) 225-1400 ext. 130
     
    Guarantee Asset Program
    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.

    Contact:

    Mike Donahue
    Phone: (603) 271-6458
     
    International Trade Loan
    Provided by the U.S. Small Business Administration, this program provides up to $1.25 million in loans for export-ready small businesses.

    Contact:

    Witmer Jones
    Phone: (603) 225-1400 ext. 130
     
    Low Documentation Program
    U.S. Small Business Administration also provides a one-page application for loans of up to $150,000 to be used for working capital for business needs.

    Contact:

    Witmer Jones
    Phone: (603) 225-1400 ext. 130
     
    NH Export Finance Program
    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.

    Contact:

    Amy Johnson
    Phone: (603) 334-6074
     
    Vested for Growth Capital for Business Development
    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.

    Contact:

    John Hamilton
    Phone: 9603) 224-6669 ex. 239
     
    Working Capital Asset Guarantee
    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.

    Contact:

    Mike Donahue
    Phone: (603) 271-6458
     
    MerchantBanc Venture Partners LP
    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.

    Contact:

    2 Wall St., 2nd Floor
    Manchester, NH 03101
    Phone: (603) 623-5500
    Fax: (603) 623-3972
    Email

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