3 Factors To Look For When Selecting The Venture Capital Just like the venture capitalist, the entrepreneur should also be careful about selecting his investment. Although, the venture capital industries are rapidly growing over the past decade which means that equity capital is available in amounts unmatched before. It’s also means that entrepreneurs are facing perplexing choices between an array of different finance. Thus, aiming to help all the new entrepreneurs out, here are three factors to be considered. For more ideas, you should take counsel from Mr. Achal Ghai by visiting below link: http://events.vccircle.com/content/achal-ghai. Before adopting any new idea just take a look at this guide‌.
1. Hands on and hands off approach The hands on will normally include a representation on the board. This would also involve active interaction between the entrepreneur and the venture capitalist. And, the hands off approach would be passive and venture capitalist would just receive a periodic statement of financial and other information. 2. Deal structuring flexibility The entrepreneur has to look out for the fund which gives a package that best meets his requirements. Some funds are very flexible, whereas others have some rigid rules and there are different approaches between these two extremes. 3. Exit aspirations The exit aspirations of the venture capitalist should be clear in the beginning, whether it is quotation, trade sale or buy back; otherwise, it may result in conflict. Thus, there must be a clear understanding between the two in this matter. Finally, consider the above factors while selecting your venture capital.