Getting your business investor exposure.
At Equity Alliance, we focus on one goal: to build great companies with dedicated people. We continue to strive for a team-oriented course of action, providing a strategic mix of guidance, hands-on leadership and deep industry knowledge, to help entrepreneurs build a lasting market-leader company.
An extensive international network of investors, as well as suppliers and technology partners, give Equity Alliance an unprecedented advantage in helping start-up companies succeed in the international market. Many of our clients have been successful in raising money from such investors, even in turbulent market conditions, with typically large rounds that can provide management with the cushion necessary as they focus on their business.
Equity Alliance believes that Venture Capital is more than just investing money in a pipe dream. We offer the discerning entrepreneur a partnership built on traditional business values of quality, integrity, and commitment to the long-term relationship, adapted to the modern era. We are selective in identifying new investments, preferring quality over quantity.
1. Equity Alliance can put the right people in the right place, to aid your company soar to the heights you expect.
2. Equity Alliance brings a decade of experience, skills and contacts, all aiding strategy and key decision making.
3. We will have a vested interests, thus ensuring our full attention.
4. Equity Alliance can provide follow up funding to see the business grow
Getting your business investor exposure.
Venture Capital (VC) is financial capital provided to early stage, high potential, high risk growth start-up companies. The Venture Capital fund makes money by owning equity in the companies it invests in. Those companies usually have a novel technology, or business model in high technology industries, such as biotechnology, IT and software. The typical Venture Capital investment occurs after the seed funding round, as the first round of institutional capital to fund growth, also referred to as Series A round. This in the interest of generating a return through an eventual realization event, such as an IPO, or trade sale of the company. Venture Capital is a subset of private equity. Therefore, all venture capital is private equity, but not all private equity is venture capital.
In addition to Angel Investing and other seed-funding options, Venture Capital is attractive for new companies with limited operating history, that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete adept offering. In exchange for the high risk that Venture Capitalists assume by investing in smaller and less mature companies, they usually gain significant control over company decisions, in addition to a significant portion of the company’s ownership (and consequently value).
Venture Capitalis also associated with job creation (accounting for 2% of US GDP), the knowledge economy, and is used as a proxy measure of innovation within an economic sector or geography. Every year, there are nearly 2 million businesses created in the USA, and 600–800 get venture capital funding. According to the National Venture Capital Association, 11% of private sector jobs come from venture backed companies, and venture backed revenue accounts for 21% of US GDP.
This is also a way in which public and private sectors can construct an institution that systematically creates networks for new firms and industries, so that they can progress. This institution helps in identifying and combining skills sectors in companies, such as finance, technical expertise, marketing and business models. Once integrated, these enterprises succeed by becoming nodes in the search networks for designing and building products in their domain.
Venture Capitalists are typically very selective in deciding what to invest in; as a rule of thumb, a fund may invest in only one in four hundred opportunities presented, in search of extremely rare, yet sought after, qualities, such as innovative technology, potential for rapid growth, a well-developed business model, and an impressive management team. Of these qualities, funds are most interested in ventures with exceptionally high growth potential, as only such opportunities are likely capable of providing the financial returns and successful exit event within the required time frame (typically 3–7 years) that venture capitalists expect.
Because investments are liquid, and require an extended time frame to harvest, Venture Capitalists are expected to carry out detailed due diligence prior to investment. Venture Capitalists are also expected to nurture the companies in which they invest, in order to increase the likelihood of reaching an IPO stage when valuations are favorable.
A company showing the qualities that Venture Capitalists seek, will find it easier to raise venture capital. These qualities include a solid business plan, a good management team, investment and passion from the founders, sound potential to exit the investment before the end of their funding cycle, and target minimum returns in excess of 40% per year.