What is venture capital?

September 20, 2017
By Nicholas Beames

What is venture capital, and why do you need it? Excellent question! It’s a form of private equity, focused on small companies and start ups. If you’ve got the potential for high growth and success, then a venture capital firm like Beames Capital can provide you with the funding and investment to get you there. Of course, there’s risk - we can’t just give you money for free! But working with us means we’ll discuss all the different options available, and find a solution that works for everyone. How is it different to a normal loan?With a loan, the lender gives the company money, and the company pays that money back in a specified period of time along with interest. Sometimes the loan has some sort of security (assets such as equipment) and/or a personal guarantee from the business owner.Venture capital is different. The company issues private shares of the company to the venture capitalist in exchange for the money. This means the venture capitalist becomes a partial owner of the company. Whether a loan or venture capital is right for you, is something you need to consider when looking at your funding options. We’re more than happy to have a chat to answer any questions you might have about whether this is the right path for you.