• SHOP
  • SITES
  • NEWSLETTER
  • CEO HACKS
  • GLOBAL SEARCH
  • WEB SUPPORT
  • CONTACT
Rescue a CEO
  • Advice
    18 Entrepreneurs Share Some of The Best Leadership CEO Hacks and Resources

    18 Entrepreneurs Share Some of The Best Leadership CEO Hacks and Resources

    8 Entrepreneurs and Business Owners Explain How Coaching Has Affected Their Leadership Style

    8 Entrepreneurs and Business Owners Explain How Coaching Has Affected Their Leadership Style

    16 Entrepreneurs Reveal How They Market Their Business During the Slower Months

    16 Entrepreneurs Reveal How They Market Their Business During the Slower Months

    21 Entrepreneurs Share Advice on Building a Team

    30 Entrepreneurs Share Advice on Building a Team

    7 Entrepreneurs Share How They Approach Tax Planning

    7 Entrepreneurs Share How They Approach Tax Planning

    8 Entrepreneurs Share Advice on Securing Venture Capital

    8 Entrepreneurs Share Advice on Securing Venture Capital

    30 Entrepreneurs Share How they Find, Recruit and Attract Talent

    30 Entrepreneurs Share How they Find, Recruit and Attract Talent

    30 Entrepreneurs Share Their Best Delegation Tips

    30 Entrepreneurs Share Their Best Delegation Tips

    30 Entrepreneurs Share How They Stop Burnout from Happening

    30 Entrepreneurs Share How They Stop Burnout from Happening

  • Productivity
    16 Entrepreneurs Share How They Focus

    16 Entrepreneurs Share How They Focus

    30 Entrepreneurs Explain the Best Ways to Get Out of One’s Comfort Zone

    30 Entrepreneurs Explain the Best Ways to Get Out of One’s Comfort Zone

    30 Entrepreneurs Explain the Best Ways to Encourage a Team to be Disruptive

    30 Entrepreneurs Explain the Best Ways to Encourage a Team to be Disruptive

    30 Entrepreneurs Share Their Thoughts on The Future Impact of Coworking

    30 Entrepreneurs Share Their Thoughts on The Future Impact of Coworking

    29 Entrepreneurs Explain Why They Have OR Don’t Have A Virtual Assistant

    29 Entrepreneurs Explain Why They Have OR Don’t Have A Virtual Assistant

    30 Entrepreneurs Explain How They Maintain Balance as CEOs

    30 Entrepreneurs Explain How They Maintain Balance as CEOs

    25 Entrepreneurs Explain The Best Ways to Get Out of One’s Comfort Zone

    25 Entrepreneurs Explain The Best Ways to Get Out of One’s Comfort Zone

    Teaching an Old Dog New Tricks – How Working From Home is Cultivating a Creativity Revolution

    Becoming Productive: Finding Your Balance

    20 Entrepreneurs Explain the Best Ways to Encourage a Team to be Disruptive

    20 Entrepreneurs Explain the Best Ways to Encourage a Team to be Disruptive

  • Answers
    30 Entrepreneurs Explain How They Use Their Blog for Business

    23 Entrepreneurs Explain How They Use Their Blog for Business

    17 Entrepreneurs Explain How They Keep Track of Their Numbers

    17 Entrepreneurs Explain How They Keep Track of Their Numbers

    30 Entrepreneurs Explain How They Retain Top Talent

    30 Entrepreneurs Explain How They Retain Top Talent

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Share How the Workplace Has Changed

    30 Entrepreneurs Share How the Workplace Has Changed

    30 Entrepreneurs Share What They Had to Pivot and Shift Within Their Business During the Digital Migration

    30 Entrepreneurs Share What They Had to Pivot and Shift Within Their Business During the Digital Migration

    30 Entrepreneurs Share How They Stop Burnout from Happening

    30 Entrepreneurs Share How They Stop Burnout from Happening

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

  • Marketing
    30 Entrepreneurs Explain How They Use Their Blog for Business

    23 Entrepreneurs Explain How They Use Their Blog for Business

    25 Entrepreneurs Share Their Thoughts on SEO and Its Future

    25 Entrepreneurs Share Their Thoughts on SEO and Its Future

    11 Entrepreneurs Explain How They Use Their Podcast for Business

    11 Entrepreneurs Explain How They Use Their Podcast for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    29 Entrepreneurs Explain How They Use Their Podcast for Business

    29 Entrepreneurs Explain How They Use Their Podcast for Business

    30 Entrepreneurs Explain How They Use Their Podcast for Business

    30 Entrepreneurs Explain How They Use Their Podcast for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Podcast for Business

    30 Entrepreneurs Explain How They Use Their Podcast for Business

  • Blog
  • MORE
    • START
    • FAQ
    • NEWSLETTER
    • HACKS
    • ABOUT
    • SITES
    • GUEST POSTS
    • WEBSITE SUPPORT SERVICES
  • Community
    • FREE CBNation Buzz Newsletter
    • Premium CEO Hack Buzz Newsletter
No Result
View All Result
Rescue a CEO
  • Advice
    18 Entrepreneurs Share Some of The Best Leadership CEO Hacks and Resources

    18 Entrepreneurs Share Some of The Best Leadership CEO Hacks and Resources

    8 Entrepreneurs and Business Owners Explain How Coaching Has Affected Their Leadership Style

    8 Entrepreneurs and Business Owners Explain How Coaching Has Affected Their Leadership Style

    16 Entrepreneurs Reveal How They Market Their Business During the Slower Months

    16 Entrepreneurs Reveal How They Market Their Business During the Slower Months

    21 Entrepreneurs Share Advice on Building a Team

    30 Entrepreneurs Share Advice on Building a Team

    7 Entrepreneurs Share How They Approach Tax Planning

    7 Entrepreneurs Share How They Approach Tax Planning

    8 Entrepreneurs Share Advice on Securing Venture Capital

    8 Entrepreneurs Share Advice on Securing Venture Capital

    30 Entrepreneurs Share How they Find, Recruit and Attract Talent

    30 Entrepreneurs Share How they Find, Recruit and Attract Talent

    30 Entrepreneurs Share Their Best Delegation Tips

    30 Entrepreneurs Share Their Best Delegation Tips

    30 Entrepreneurs Share How They Stop Burnout from Happening

    30 Entrepreneurs Share How They Stop Burnout from Happening

  • Productivity
    16 Entrepreneurs Share How They Focus

    16 Entrepreneurs Share How They Focus

    30 Entrepreneurs Explain the Best Ways to Get Out of One’s Comfort Zone

    30 Entrepreneurs Explain the Best Ways to Get Out of One’s Comfort Zone

    30 Entrepreneurs Explain the Best Ways to Encourage a Team to be Disruptive

    30 Entrepreneurs Explain the Best Ways to Encourage a Team to be Disruptive

    30 Entrepreneurs Share Their Thoughts on The Future Impact of Coworking

    30 Entrepreneurs Share Their Thoughts on The Future Impact of Coworking

    29 Entrepreneurs Explain Why They Have OR Don’t Have A Virtual Assistant

    29 Entrepreneurs Explain Why They Have OR Don’t Have A Virtual Assistant

    30 Entrepreneurs Explain How They Maintain Balance as CEOs

    30 Entrepreneurs Explain How They Maintain Balance as CEOs

    25 Entrepreneurs Explain The Best Ways to Get Out of One’s Comfort Zone

    25 Entrepreneurs Explain The Best Ways to Get Out of One’s Comfort Zone

    Teaching an Old Dog New Tricks – How Working From Home is Cultivating a Creativity Revolution

    Becoming Productive: Finding Your Balance

    20 Entrepreneurs Explain the Best Ways to Encourage a Team to be Disruptive

    20 Entrepreneurs Explain the Best Ways to Encourage a Team to be Disruptive

  • Answers
    30 Entrepreneurs Explain How They Use Their Blog for Business

    23 Entrepreneurs Explain How They Use Their Blog for Business

    17 Entrepreneurs Explain How They Keep Track of Their Numbers

    17 Entrepreneurs Explain How They Keep Track of Their Numbers

    30 Entrepreneurs Explain How They Retain Top Talent

    30 Entrepreneurs Explain How They Retain Top Talent

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Share How the Workplace Has Changed

    30 Entrepreneurs Share How the Workplace Has Changed

    30 Entrepreneurs Share What They Had to Pivot and Shift Within Their Business During the Digital Migration

    30 Entrepreneurs Share What They Had to Pivot and Shift Within Their Business During the Digital Migration

    30 Entrepreneurs Share How They Stop Burnout from Happening

    30 Entrepreneurs Share How They Stop Burnout from Happening

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

  • Marketing
    30 Entrepreneurs Explain How They Use Their Blog for Business

    23 Entrepreneurs Explain How They Use Their Blog for Business

    25 Entrepreneurs Share Their Thoughts on SEO and Its Future

    25 Entrepreneurs Share Their Thoughts on SEO and Its Future

    11 Entrepreneurs Explain How They Use Their Podcast for Business

    11 Entrepreneurs Explain How They Use Their Podcast for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    29 Entrepreneurs Explain How They Use Their Podcast for Business

    29 Entrepreneurs Explain How They Use Their Podcast for Business

    30 Entrepreneurs Explain How They Use Their Podcast for Business

    30 Entrepreneurs Explain How They Use Their Podcast for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Podcast for Business

    30 Entrepreneurs Explain How They Use Their Podcast for Business

  • Blog
  • MORE
    • START
    • FAQ
    • NEWSLETTER
    • HACKS
    • ABOUT
    • SITES
    • GUEST POSTS
    • WEBSITE SUPPORT SERVICES
  • Community
    • FREE CBNation Buzz Newsletter
    • Premium CEO Hack Buzz Newsletter
No Result
View All Result
Rescue a CEO
No Result
View All Result

Risk Management When Investing In Venture Capital: How To Avoid Debt

in Advice
Reading Time: 4 mins read
Risk Management When Investing In Venture Capital: How To Avoid Debt

Venture capital investment has enabled the existence of many  successful companies. Businesses like WhatsApp, Facebook, Groupon, Alibaba, Google, Twitter, Spotify, and Dropbox were all made possible through VC investments, and their investors, as well as the world as a whole, are all the richer as a result of their success.

But what exactly is VC, what are the risks and how can you make it work for you?

RelatedPosts

18 Entrepreneurs Share Some of The Best Leadership CEO Hacks and Resources

8 Entrepreneurs and Business Owners Explain How Coaching Has Affected Their Leadership Style

16 Entrepreneurs Reveal How They Market Their Business During the Slower Months

What is Venture Capital?

Venture capital is the practice of large scale investment in startup or developing companies with the goal of helping that business take off. It is one of the methods of funding a company's operations before it has become profitable and usually happens at a stage of said companies' development that precedes the business goes public.

There are two types of VC investors. Dedicated venture capital firms use other people's money to fund startups, and make money for themselves and their investors depending on the scope and success of their investments. Then there are the so-called “angel investors” who use their own funds to give startups a boost at the very beginning of their journey. Regardless of who's doing it, there are a few things that all VC investments have in common.

VC investment success stories are awe-inspiring, as such investments are responsible for a fair few of the world's top businesses. However, that's only part of the story when it comes to VC. While it can create immense value for investors, it involves a lot of money and a lot of risks. Horror stories of huge sums of money getting lost in one fell swoop are far from uncommon when it comes to VC.

Unfortunately, that is that's what happens in the majority of VC investments – only one in five venture investments ever pays off. The rest end up with the company in question insolvent and liquidated in just a couple of short years after eating up a couple of million pounds.

See also  10 Best Software Tools for Businesses Planning a Return to Work

What Should You Consider Before Investing in VC?

Although VC may appear glamorous and flashy, nothing can be further from the truth. Any type of VC investment is an arduous affair. By its very nature, the process involves giving large sums of money away to businesses who more often than not turn out to be less prospective than they may appear at first. Furthermore, most businesses that do make it big require multiple rounds of investment of millions of pounds before they get off the ground.

As you can imagine, VC can lose you a lot of money very quickly. A few rounds of bad or unlucky investments, or a crisis or two, could see you buried under mountains of debt. In order to avoid that fate, it may be prudent to seek counsel from an experienced professional, such as these insolvency practitioners in London, both before taking up VC investment and when you evaluate prospective businesses.

How to Manage Risk in Venture Capital?

In its very essence, venture capital investment is a high risk, high reward game. As mentioned previously, the people involved go into every deal with the knowledge that the chance of any particular startup succeeding in making their time worthwhile is low. However, there are steps one can take to make VC a calculated risk rather than a blind roll of the dice with very bad odds of success.

Due diligence is key for minimizing the risks when it comes to VC. An investor that does a deep dive on the company they invest in, as well as keep a close eye on the industry in question as a whole, can dramatically increase their chances of making their money back.

See also  How Omnichannel Marketing Creates Customer Loyalty

The better you know the industry, the market and the company that you plan to invest in, the better the chances of success are.

Essential as industry knowledge may be, the due diligence doesn't end there. An investor needs to be able to instantly pick up on red flags that may indicate that a company is a bad investment. This means that VC investors should be intimately familiar with accounting and management and have a keen eye for detail.

Legal problems can also spell the doom of a company in very short order, so a fair grasp of local law is also crucial for risk management when it comes to VC investments.

Finally, as a VC, you will become intimately familiar with business failure. Since some of the businesses you invest in may end up insolvent or liquidated, you should definitely make an effort to study the process of business failure. Knowing why and how that happens, what the main driving forces behind it are, what factors can contribute to it, how it can be countered, at which point it becomes inevitable and what to do about it is essential for you.

Such knowledge would give you invaluable insight about the problems you should be looking for when choosing investment targets. After all, you want to avoid dealing with failure, insolvency, and bankruptcy as much as possible – and one of the main ways of doing so is to dodge the weaker candidates that catch your attention.

Is Venture Capital Investment Right For You?

Venture capital investment is tricky to do. The barrier to entry is high in terms of both money and skill. It is a challenging thing to do for both angel investors and for dedicated firms.

See also  The Fundamental Guide to Marketing and Sales Synergy

The risks involved are also tremendous, as the very nature of the game is to play against the odds. However, history shows that this sort of investment can produce a lot of value, both for individual investors and for mankind as a whole. This is the reason why it is still so popular, in spite of its horrendous potential for monetary loss. Whether or not you can make it work for you depends on your dedication, wit, networking skills, eye for detail, and to a significant extent – on your luck.

 

Guest post courtesy of Alice Singer

Tags: VC investorVenture capital investment
Previous Post

5 Best Installment Loans For Bad Credit Scores

Next Post

How To Save Your Business From COVID-19

Related Posts

18 Entrepreneurs Share Some of The Best Leadership CEO Hacks and Resources
Advice

18 Entrepreneurs Share Some of The Best Leadership CEO Hacks and Resources

To be an entrepreneur and business owner, you have to understand leadership and be excellent at it. There are numerous...

8 Entrepreneurs and Business Owners Explain How Coaching Has Affected Their Leadership Style
Advice

8 Entrepreneurs and Business Owners Explain How Coaching Has Affected Their Leadership Style

The evolution of leadership style has been profoundly influenced by the dynamic and enlightening journey of coaching. This process of...

16 Entrepreneurs Reveal How They Market Their Business During the Slower Months
Advice

16 Entrepreneurs Reveal How They Market Their Business During the Slower Months

Slowing sales can be a foreboding sign that a business is failing to retain customers and attract new ones. During...

21 Entrepreneurs Share Advice on Building a Team
Advice

30 Entrepreneurs Share Advice on Building a Team

Building a team involves more than just the right hiring and effective management. As a business leader, you have to...

Next Post
How To Save Your Business From COVID-19

How To Save Your Business From COVID-19

20 Entrepreneurs Reveal Their Most Used Hack or Resource

20 Entrepreneurs Reveal Their Most Used Hack or Resource

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Join CBNation Buzz

Name(Required)
Email(Required)
This field is for validation purposes and should be left unchanged.

Welcome to CBNation Welcome to CBNation powered by Blue16 Media (Web Design & SEO). We are a B2B brand that is exists to help over 1M business owners succeed. Our philosophy and foundation is based on resources, visibility & connections (Visibility + Resources x Connections = Success). We are focused on being the #1 business resource for CEOs, entrepreneurs and business owners.

We hope you enjoy this site, and please let us know if we can be of any help!

Please note in the sake of transparency our sites do contain affiliate links that pay us a small commission at no extra cost to you. Read our Affiliate Disclaimer.
CBNation Library
CEO Hacks
I AM CEO Volume 3

RSS Our Latest CBNation Content:

  • IAM1866 – Results-Driven Performance Coach and Consultant Helps People Achieve More Happiness, Fulfillment and Success
  • 7 Entrepreneurs Explain How They Use Their Podcast for Business
  • IAM1865 – Performance Coach Helps Women to Focus on Inner Work and Mindset Mastery
  • IAM1864 – Transformational Coach Empowers Leaders and Achieve Life Goal Potential
  • IAM1863 – Innovator and Author Shares About Resiliency to Community Leaders and Healthcare Advocates
  • 14 Entrepreneurs Describe Their Leadership Style

Our Sponsors

Subscribe

Join thousands of subscribers & be the first to get new freebies.

Name(Required)
Email(Required)
This field is for validation purposes and should be left unchanged.

What is CBNation?

We're like a Global Business Chamber but with content...
LOTS OF IT

CBNation includes a library of blogs, podcasts, videos and more helping CEOs, entrepreneurs and business owners level up

CBNation is a community of niche sites for CEOs, entrepreneurs and business owners through blogs, podcasts and video content. Started in much the same way as most small businesses, CBNation captures the essence of entrepreneurship by allowing entrepreneurs and business owners to have a voice.

CBNation curates content and provides news, information, events and even startup business tips for entrepreneurs, startups and business owners to succeed.

+ Mission: Increasing the success rate of CEOs, entrepreneurs and business owners.

+ Vision: The media of choice for CEOs, entrepreneurs and business owners.

+ Philosophy: We love CEOs, entrepreneurs and business owners and everything we do is driven by that. We highlight, capture and support entrepreneurship and start-ups through our niche blog sites.

Visit CBNation

RSS Our Latest Content:

  • IAM1866 – Results-Driven Performance Coach and Consultant Helps People Achieve More Happiness, Fulfillment and Success
  • 7 Entrepreneurs Explain How They Use Their Podcast for Business
  • IAM1865 – Performance Coach Helps Women to Focus on Inner Work and Mindset Mastery
  • IAM1864 – Transformational Coach Empowers Leaders and Achieve Life Goal Potential
  • IAM1863 – Innovator and Author Shares About Resiliency to Community Leaders and Healthcare Advocates
  • 14 Entrepreneurs Describe Their Leadership Style
  • 19 Entrepreneurs Share Why They Started Their Own Business
  • IAM1862 – Coach Helps Entrepreneurs Elevate Their Productivity By Rewiring Their Brains
  • IAM1861 – Executive Life an Leadership Coach Helps Clients Make an Impact on the World
  • Monday Motivation: When All Is Lost, You Have Everything To Win

©2023 CBNation | Powered by CEO Blog Nation & Blue16 Media | Terms of Service | Privacy Policy | Affiliate Disclaimer | Website Support Services

No Result
View All Result
  • Advice
  • Productivity
  • Answers
  • Marketing
  • Blog
  • MORE
    • START
    • FAQ
    • NEWSLETTER
    • HACKS
    • ABOUT
    • SITES
    • GUEST POSTS
    • WEBSITE SUPPORT SERVICES
  • Community
    • FREE CBNation Buzz Newsletter
    • Premium CEO Hack Buzz Newsletter
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
SettingsAccept
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
 Share This
 Facebook