Venture Capital Funding

'Venture Capital' is an important source of finance for those small and medium-sized firms, which have very few avenues for raising funds. Although such a business firm may possess a huge potential for earning large profits in the future and establish itself into a larger enterprise. But the common investors are generally unwilling to invest their funds in them due to risk involved in these type of investments.  In a way, venture capital is a commitment of capital, or shareholdings, for the formation and setting up of small scale enterprises at the early stages of their life cycle.

We believe in the philosophy that venture capital is important for economic growth and that florida and many other major regions are underserved in the amount of venture capital available to fund exciting new ideas and technologies.

Success is often built by a combination of innovation, capital and strong working relationships. Our belief is that by providing much needed capital to top tier venture capital firms, and building bridges between those firms, young innovation companies and Michigan's established business community, we can achieve regional success in the form of strong investment returns and economic growth.

The venture capital recognises different stages of financing, namely:-

• Early stage financing - This is the first stage financing when the firm is undertaking production and need additional funds for selling its products. It involves seed/ initial finance for supporting a concept or idea of an entrepreneur. The capital is provided for product development, R&D and initial marketing.
• Expansion financing - This is the second stage financing for working capital and expansion of a business. It involves development financing so as to facilitate the public issue.
• Acquisition/ buyout financing - This later stage involves:- 
• Acquisition financing in order to acquire another firm for further growth
• Management buyout financing so as to enable the operating groups/ investors for acquiring an existing product line or business and
• Turnaround financing in order to revitalise and revive the sick enterprises.