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VENTURE CAPITAL FINANCE If you are looking for a cash injection into your business you might want to consider asking for venture capital from the specialist finance intermediaries who operate in this specialised market. Essentially, third parties will take a stake in your company in exchange for a cash advance, but you need to be aware that this is not a five-minute process. The venture capital providers will firstly need to make sure that your company prospects are viable and then they will undertake a period of due diligence before seeking finance from third party backers.
Before a venture capital company will even look at a proposal to raise cash they will expect you to submit a clearly written proposal, including up to date financial accounts, cash flow forecasts and in many cases a 3 - 5 year business plan. There are people who can help you to write your outline proposals for venture capital, but this sort of service will not come cheap and you must be prepared to invest a fair amount of your time providing key information.
 Venture capital is a great way of releasing cash in exchange for equity, but many successful business entrepreneurs are understandably reluctant for third parties to take a stake in their company. It is important to recognise that someone who is prepared in your business is not going to be prepared to just sit back passively without any involvement in your business, so you need to be mentally prepared that you will no longer be the only decision-maker. As a minimum, you are going to find it necessary to involve your financial backer in major investment and business decisions in the future - after all, they're going to be shareholders, so why wouldn't they? There are all sorts of ways of injecting capital into your business and venture capital is just one financial instrument. You might also want to consider the following areas: The cycle time for raising venture capital can take as long as six months, so it is not suited for a short term cash injection and is definitely not suited for business that are in trouble or that have short term cash flow deficiencies.
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