Some high-growth start-ups solicit venture capital funds through individuals and companies who invest money in businesses in return for a percentage of future revenues.
Venture capital can be an excellent resource for projects with high capital requirements and a high potential rate of return. Keep in mind that Venture Capital firms have tough investment requirements. Criteria include:
An experienced, proven top management team
Very fast growth
Large market potential
Larger capital needs
Substantial due diligence (an investigation into a business's financial and operational performance)
An exciting new venture capital opportunity is now available to some DC businesses that meet these requirements. The Certified Capital Company Program was enacted by DC Council to provide $50 million in long-term equity (and debt) for new or expanding small businesses based in DC. Three venture capital companies were certified by Department of Insurance, Securities, and Banking to provide $50 million in long-term equity (and debt) for new or expanding small businesses based in DC.
You can find out about other available venture capital firms by calling your Chamber of Commerce, calling investment clubs, contacting the National Venture Capital Association, and searching the Internet for "investment clubs" or "venture capital."
