Venture capital firms are notorious about choosing only select candidates for their funding. Out of hundreds or even thousands of potential candidates, only a few are selected as investment opportunities. However, not only do venture capital firms offer money to help a new business get up to speed and meet their full potential, but they are also there to act in an advisory capacity as well. So what other roles to venture capital firms play in a developing business? Here are just a few. General Business Strategy Advice Venture capital firms are in the business of helping other businesses succeed. In doing so, they have acquired a great deal of experience and wisdom along the way. Do not expect a VC firm to hang back and be a “silent partner.” Instead, expect a venture capital firm to offer plenty of advice in how a business should proceed with their strategies and offer new strategies in addition. Develop a Financing Plan Obtaining venture capital is similar to getting a loan. While banks and other types of investors will usually set up a regular payment plan and expect a business to stick to it, venture capital will clearly outline how they expect to be repaid for their monetary contribution.
