venture capital

Most businesses, regardless of their growth, require an outside source of capital at some time - achieving the confidence and support of investors can signify the beginning of positive change and further determine the success of meeting business objectives.

Usually there are only two forms of capital available - equity or debt. Debt is money invested in a business in exchange for the legal requirement to repay an agreed sum on a regular basis until the initial sum and interest is returned; banks and other financial institutions are the usual examples of money lenders, however offer little or no support. Equity capital is money invested in a business, in exchange for a share in that business. The equity investor is committed to the business in both the good and bad times, sharing in both the risk and reward of the venture. Friends, Family, Business Angels and Venture capitalists are common examples of equity investors.

Before seeking venture capital from an investor or fund manager, a business must provide a positive response to the following questions.

• Does the business have the potential to achieve significant growth over the next 3-5 years?
• Can it be demonstrated to potential investors that the business has a unique selling proposition that distinguishes its product and/or service from that of its competitors?
• Is the entrepreneur or management prepared to raise finance to turn this growth potential into reality, by reducing their share of the equity in the business?
• Is the entrepreneur or management prepared to accept additional input, and possibly share control of the business
• Is your business, its operations and its strategies accurately reflected in a professionally developed business plan?

If you couldn't provide a positive response to all of the above questions, don't despair, Eastview systems can help as its specialisation is twofold. Eastview systems specialise in sourcing start-up and expansion capital for business throughout Australia. Eastview systems also specialise in venture capital readiness - preparing businesses for the demands of successfully securing capital investments. Experienced management at Eastview Systems will identify appropriate investors and select the 'best-fit' for your business. Due to a minimum financing requirement set at US $1,000,000, a business proposal and/or business plan is required and, to your benefit, will assist your application. Eastview systems can assist your business with the entire process.