Prepping For Venture Capital: The Role Of A Business Plan In An Early Stage Start-up Are you an early stage start-up entrepreneur aiming to secure venture capital funding? Prepping for venture capital is like embarking on a challenging expedition, where a well-crafted business plan serves as your compass. Just as a compass guides explorers through…
Welcome to our encyclopaedic journey into the riveting world of Venture Capital. Through this comprehensive guide, we hope to make tangible the ethereal concept that is Venture Capital, its essence and its enduring importance in the realms of software, app and web development.
Venture Capital, this phrase often tossed around amidst the tech corridors, fundamentally refers to the wealth invested by investors into startups or small-to-medium enterprises with promising growth potential. These aren’t simple loans, but a high-stake gamble, where the return on investment is expected in the form of a share in potential explosive growth of the invested company.
Within the sphere of bespoke software, app and web development, Venture Capital provisions the invaluable lifeblood for innovation, be it in enabling some of the most disruptive startup stories, or supporting established companies to take on audacious projects that venture into uncharted territories. As we deal with dynamic technological advancements, Venture Capital also settles in the blur of the new-normal, intricately weaving trends that invite deep dives.
In 2019, Venture Capital investments in the UK tech industry surged to a record-breaking £10.1 billion, serving as testament to the thriving environment tailor-made for technological innovation and growth. This ascend in Venture Capital deployment not only indicates thriving industry trends but also a growing investor confidence in the UK tech arena.
Furthermore, did you know startups that have sought Venture Capitals have a significantly higher rate of not just survival, but success too? Indeed, as per the statistics compiled by the Small Business Administration(SBA), approximately 50% of all businesses survive five years or more, but for VC-backed companies, this soars above 90%.
So, what’s all the chatter about unicorns and dragons in the Venture Capital spheres? These mythical creatures have earned a not-so-mythical status in Venture Capital jargon; Unicorns being start-ups valued at over $1 billion, and Dragons, the ones where the returns from an exit is more than the total amount of funds the VC has raised.
But as you delve into the Venture Capital scene, it isn’t all rosy; understanding the risk-return spectrum, comprehending complex contractual terms, and assessing the effect of Venture Capital on the organisational structure and control could be daunting.
This will be our tryst with Venture Capital – a rich tapestry of narratives and insights, statistics, trends, as well as unparalleled experiences shared by those who have walked (and are still walking) this exciting path.
So why not take this first step into our exhaustive Venture Capital section right away? Or perhaps begin your exploration by delving into our broader blog for a wider view?
If you find yourself harbouring a burning question, seeking advice or simply fancy a chat about all things Venture Capital, development trends or how Sweat Equity can support your venture, don’t hesitate to contact us.