Venture Capital (also known as VC or Venture) is a type of private equity capital typically provided for early-stage, high-potential growth companies in the interest of generating a return through an eventual realization event such as an IPO or trade sale of the company. Venture capital investments are generally made as cash in exchange for shares in the invested company. Companies that utilize this form of financing typically don’t have strong company financials due to the early stage they are in but have a proprietary product or idea that can make an impact in their respective market. If you are a business owner with a great idea, new technology or product, but need an influx of capital to take your business to the next level, we can help.
A small, early stage medical device company had numerous patents on improving the traditional design of crutches we are all familiar with. Upon further due-diligence, it was discovered that this company had numerous letters of intent to sell and manufacture this new design to major distributors and pharmacies across the United States. Since this company was at an early stage, it did not have the necessary capital to put the design into full production. In addition, the company did not show a lot of revenue history and liquidity since it was so new, which made traditional financing virtually non-existent. A venture capital firm was contacted that specializes in funding early stage companies in the medical arena. They liked the idea and product so much that this firm ended up providing the company with $6,000,000, enough to launch product to full production phase and distribute the product nationally.
|Amount of loan:||$6,000,000|
|Total time to close:||2 Months|