Venture Capital Firm Business Plan Sample

VENTURE CAPITAL BUSINESS PLAN SAMPLE TEMPLATE

First, it is important to know what Venture Capital Business is all about. A venture capital business is a business that provides funding for startup companies or other businesses that have high growth potential. Venture capitalists also get a say in the running of any business they invest in, since they are taking a risk by investing in such.

It is not easy to start a venture capital company, but if you are serious about being in the capital market and you have a good financial background, experience, and certifications to back you up, be rest assured that with determination, you can comfortably build this business.

Starting a venture capital company is not a ground for rookies, it is for people who have played the game of business and know their onions. I am talking about those who have tried their hands on familiar terrain and succeeded or failed, either way there is experience and wisdom good enough for this type of venture.

I want to emphasize that venture capitalism is not for the faint of heart because it is about exposing yourself to risk. You are expected, as a venture capitalist, to fund entrepreneurs and their ideas with the money of investors and make huge returns on the investment.

Here is a sample business plan for starting a venture capital company.

STEP ONE: Be Sure of What You Want and Know your Limits
Starting a venture capital company is more complex than other businesses where basically you just need have to commit your money make profits. Here, you should have the ability to search for the right businesses to invest in and know how to fish out the ones you don’t want to invest in.

STEP TWO: Do your Research
Conduct a thorough research on the nature of this business, the environments you wish to hunt for entrepreneurs, their potential, the general financial market, and legal backing.

Pick an already existing venture capital company, a very successful one. Study this company very well to know how they manage risks and make their money.

STEP THREE: Acquire all the Qualifications Needed
I have stated before that this venture is not for newbies in the business world, as a matter of fact it is a basic requirement in this line of business to have had investment experiences and good financial education and record.

A university degree in any business related course like business administration, economics or accountancy will go a long way in helping you work as a venture capitalist. As someone who has studied economy and business, you would be able to differentiate between a growing and struggling entrepreneur and foresee their future success. If you have a Master’s degree in business, you have an added advantage as people will take you more seriously in the business world.

STEP FOUR: Work in a Venture Capital Company to have Experience
Working in venture capital company will be easy if you have already acquired the necessary qualification as explained in step three. When you work with an already successful company in this field, you will have the skills and experience which will serve as a strong foundation to the building of your own.

You will have the insight on how to grow small businesses, how to build good relationship with young entrepreneurs and work with them, and how to manage the many inevitable risks involved in the business.

STEP FIVE: Write your Business Plan
A properly written venture capital company business plan will not only give your company direction, it will also help you to get loan from the bank.

Your business plan is what top financiers will ask to see before making their decision to support or not support you, so it should be written with the knowledge that it speaks for you out there and must show clearly show your model, strategy for risk management, your knowledge of the market and your vision for the company.

STEP SIX: Build your Inventors’ Network and Gather Funds
You are all about generating money from various investors and injecting their funds into startup and struggling business which have a promising future, with the purpose of generating returns for these investors and of course, your company.

To create a network of investors, you need to have a good reputation for them to commit their hard earned money to you. For this reason, you are to let them see your successful records in past experiences and also show them your strategy for risk management and profit making. Persuade them more by giving juicy deals that they will find irresistible.

STEP SEVEN: Get your Company Registered and Obtain a License
Before you can start operating as a venture capital company, you must get your company legally registered and be issued a proper license which gives you authority and permission to practise. This is important, not only because it is in accordance with the law but because you are handling other people’s resources and you must be licensed to do so.

STEP EIGHT: Hiring
Now that you are registered, you will need employees in your company and the quality of those you hire will go a long way in determining the success of your venture.

Employ people who have the skills that complement your own.

STEP NINE: Look for and Partner with Entrepreneurs
Go out there, source for young entrepreneurs, startups, and struggling businesses that just need a little financial push to thrive. When you find them, put your skills into maximum use and achieve what you set out to do.

VENTURE CAPITAL BUSINESS PLAN EXAMPLE

Writing a detailed venture capital business plan is pretty stressful, that is a fact that cannot be denied by most entrepreneurs.

In order to help ease this little inconvenience, here is a sample.

  • Business Overview
  • Vision Statement
  • Mission Statement
  • Management Structure
  • Products and Services
  • Market Analysis
  • Target Market
  • Competitive Advantage
  • Marketing Strategy
  • Financial Plan:
  • Pricing Strategy
  • Conclusion

BUSINESS OVERVIEW
Kloe Venture Capital Business Inc. is a registered and licensed venture capitalist firm that provides venture capitalist services. Kloe Venture Capital Business will be based in Texas, USA with plans of extending to other states and countries in the nearest future.

At Kloe Venture Capital Business Inc., we plan to be client-oriented and be guided by our values and professional ethics. While catering to the needs of individual corporate clients, Kloe Venture Capital Business will endeavour to work as hard as possible in order to meet with and surpass the expectations of our clients on a regular basis.

Kloe Venture Capital is a business focused on ethics and this is our drive. With strong principles, we will strive to build a work environment that is conducive for both staff and client.

With well trained, certified and equipped staff, Kloe Venture Capital plans to operate a venture capitalist business that becomes the leading venture capitalist firm in America. We are confident we can get to the top because we have done all the needed research and feasibility studies needed which makes us really optimistic about meeting these heights.

Kloe Venture Capital Business Inc. is founded by Jacob Ade and Fawaz Smith and the firm would be managed by the pair who aim to build to take this firm to the highest point achievable with their vast financial experience and expertise.

Jacob Ade and Fawaz Smith are both graduates of accounting and are certified venture capitalists. Fawaz Smith has 10 years working experience with investment banks in and outside the USA and Jacob Ade has an MSc. in accounting from the University of Yorkshire.

VISION STATEMENT
The vision of Kloe Venture Capital Business Inc. is to build a capitalist firm that would be the number one brand when it comes to venture capital business in the US. Our vision is founded on our core values which include; strong ethics, excellence, service and teamwork.

MISSION STATEMENT
Our mission is to provide the best venture capitalist services to individual and corporate clients within and outside the country.

MANAGEMENT STRUCTURE
In order to efficiently meet up to the vision and mission of Kloe Venture Capital, we will set up a qualified, honest and hardworking team that will occupy the following positions in our firm.

• Chief Executive Officer
• Venture Capitalists Consultants
• Admin and HR Manager
• Risk Manager
• Marketing and Sales Executive
• Chief Financial Officer.
• Front Desk Officer

PRODUCT AND SERVICES
Within the scope of the financial investment services industry in America, Kloe venture Capitalist would be offering different services to clients. At Kloe venture Capitalist, we have the intention of starting out in order to work with promising start – ups and other business ventures.

Our business offering are listed below;

• Investing in financial contracts on own account
• Participating in clubs comprising of those who pool their money to make investments
• Oil royalty dealing
• Venture capital
• Trade in financial products
• Related investment consulting and advisory services

MARKET ANALYSIS
Market Trends

Over the years, startup businesses have failed to grow successfully as a result of inadequate funding. Some great business ideas die out for the same reason. Even the American government had to step in at some point to provide funding for Small and Medium Enterprises (SME).

Every day, the need for the services of a venture capitalist firm increases and both old and new businesses seek out funding. Although the fact that the nation is trying to come out of a recession has made the venture capital industry face a little challenges and hiccups here and there, it has now set on a steady path to growth.

This is reflected in rising security prices and increased merger and acquisition of companies and other businesses in recent years.

Kloe Venture capital is set to take advantage of this trend and offer clients the best venture capitalist services they can find.

TARGET MARKET
A detailed analysis of our target market reveal the fact that venture capital services are required by small business just starting out as well as large corporate bodies looking to grow. Our services would not just be providing startup capital for businesses, there is also the need to search for such companies where capital invested would lead massive growth in a short period of time.

Our target market does not just end with small businesses and other corporate bodies, we also extend our services to investors who would have the needed capital and are ready to invest in startups as well as other businesses with great growth potential.

The list below specifies the various businesses and individuals that our services are designed for.

• Small and medium enterprises
• Accredited Investors.
• Business accelerators and startups.
• Investment Clubs.
• Top corporate executives
• Corporate Organizations.

COMPETITIVE ADVANTAGE
Providing capital for startup and other venture capital services is risky, now that cannot be denied, and Kloe Venture capital is definitely not the first venture capital firm in Texas, USA. This shows the competition is there already.

To keep up with the competition, we have developed investment strategies, which includes providing good returns for our investors and clients, and great risk assessment skills in order to be able to recognize businesses with great growth potential.

To this end, we will be equipped with the right staff that are competent and trustworthy and would be given the right motivation which would include quality welfare package.

MARKETING ADVANTAGE
The fact that sales and marketing is the brain behind every successful business is not lost on us at Kloe venture capital, this is why we have the best marketing team to help us take our business to the next level.

Our marketing team will be comprised of experienced and motivated individuals who would have the customers’ needs at heart.

The following marketing strategies would be adopted by Kloe Venture Capital Business Inc.

• Advertising our business in corporate organizations, startups, entrepreneurs and investors by sending out introductory letters as well as flyers, pamphlets and other marketing materials to them.
• Advertising our business on social media platforms including twitter, Facebook, Instagram, snapchat and others.
• Listing our business on LinkedIn and other outsourcing agencies.
• Make use of direct marketing approach.
• Request and appraise word of mouth adverts by clients.

FINANCIAL PLAN
Pricing Strategy

Kloe Venture Capitalist Business Inc., has no pricing model since it is a business that deals with generating income from various investors. Hence our main focus would be on ensuring we get good returns for our investors.

CONCLUSION
This business plan for Kloe Venture Capital Services will serve as a medium for bringing to success the vision and mission of this business. The founders are also of the opinion that this business plan can be subject to change, in order to accommodate any unforeseen changes that may occur in the venture capitalist sub-sector, in the future.

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