For businesses requiring additional finance, which are unable to increase their level of borrowing, venture capital (also known as private equity finance) may be the answer.
Venture capital firms provide financing in return for a proportion of your shares. They take a higher risk than banks do in the expectation of receiving higher returns. For your part, you have to decide whether the involvement of a venture capital firm is worth a smaller slice of a larger pie.
This briefing outlines:
- Whether venture capital will suit you.
- How you can obtain it.
