Wednesday, June 18, 2008

More on venture capital

Venture Capital Leasing

Some companies specialize in providing lease financing for equipment to high-tech start-up companies that wouldn’t ordinarily qualify. The financing can be provided at a higher fee to offset the risk and/or the finance company can have the option of purchasing stock at a preferential price if the company goes public.


Venture Capital Online services

Many intermediary-type firms have an Internet presence, which expedites the process of contacting them. Some perform a basic matching service, bringing companies and investors together. These services are not as prevalent as they were in 2000 and early 2001. As the environment for venture capital becomes more positive, more will pop up again. It is debatable whether established venture capital companies actually use these types of services to begin with. Most VCs have more deals and potential investment than they know what to do with.

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