Thursday, April 26, 2007

Are venture capitalists all sharks?

Financing your business is a very strategic decision. It can make or break your business.

Yesterday, I went with my wife in London to attend a presentation at the DLA on how to access finance to grow your business. It was quite enriching as the presentation was actually held by the chairman of several venture capitalist funds.

Although, one could tell from his attire that he was from a different social class from most of the attendees in the room, he was still able to connect with his audience by making the whole story of venture capitalist wanted to help quite believable and appealing by using simple and clear examples.

David McMeekin is the chairman of "The Capital Fund", "London Technology Fund" and "Company Guides". He is a great presenter, very knowledgeable and entertaining. I think that, despite being very realistic about the failure rate of business, he very likely has boosted the confidence of the would be business owners in the room. At least, I felt after the presentation very excited and keen to write my own business plan and apply for finance!

David also illustrated in details the benefits and risks of the 3 main sources of funding for your business being: grant, loan, equity (he also pointed that sales was your best source of finance). I hope that most of the attendees have left the room armed with the right tools and will be able to select appropriately the right type of financing for their business needs.

Financing your business is a very strategic decision. It can make or break your business. Worse than that, if you don't read the small prints, you may loose your properties (whatever it is, house, TV, car, ....). Be aware, very aware.

In conclusion, if I must leave you with one idea, it clearly would be:
Take professional advice!
I wish you all best of luck and great success.

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