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Hillcrest West has
an innovative solution:
The hardest part of any new business idea, after the idea
itself, is what's required to be done that leads to your
first round of venture capital.
Early capital is that which is known as "what it takes to
get the first job done" in venture management parlance.
Surprisingly, ask any venture capitalist where these funds
come from, you'd very likely get two answers: "We don't
know!" or "Friends and Family...".
Principally, early capital must improve your venture's
valuation to a point where the economists at an interested,
qualified venture capitalist come to believe in your plan,
your team, your ability to succeed: it must fit their
business model, so they can optimize return from investing.
Early capital comes from sales revenue, or from you, or from
some innovative solution. Otherwise you must ask
"Friends and Family", or "I don't know". Borrowing
from friends and family can make one very lonely, indeed... |