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Venture capital is a type of funding for startups and smaller companies that investors believe have long-term growth potential. It is a form of private equity without collateral. Venture capital can be provided at various stages of a company's development.
Venture capitalists include private venture capitalists (business angels), venture capital companies, or corporate venture capital companies. Before seeking investors, founders should know about the valuation of their company, put together their pitch deck, and determine how much capital they want to raise.
Among the many advantages of venture capital, the main ones are business expertise, an expanded network and additional resources. But venture capital also has disadvantages. The biggest: dilution - giving up one's shares in the company, and with it, some of the control. Another disadvantage is the length of time it takes for capital to flow, which is usually several months.
Whether for bridging, supplementing, or as an alternative: with re:cap you receive financing that you can use flexibly. You can grow your business before going into the next round of funding, increase your investor options, downsize or avoid the next round.
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But we won't tell you what to do. We want you to keep your equity and full control of your business vision.
Create an account and securely connect your bank accounts and payment tools or upload the data manually. The whole process takes only a few minutes.
We will check your company and calculate your individual financing terms – in less than 48 hours. Once approved, you will get access to our funding platform.
Now you have access to capital whenever you need it: simply set a target financing volume or trade individual subscription contracts to receive an instant payout.
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Venture capital is not suitable at all times - and not for every type of company. Common alternatives are:
- Venture debt (hybrid debt financing),
- Founder competitions,
- Government subsidies
- or alternative forms of financing,such as crowdfunding.
Companies with subscription business models can also exchange their future revenues for immediately available capital - with re:cap financing.
Generally for founders and entrepreneurs in the growth phase. But not every startup is attractive to investors. Venture capital funding is worthwhile when the business idea is innovative, the sales argument is clearly recognizable, and the founding team is convincing. In addition, the market must promise growth.
Private venture capitalists, also known as business angels, and so-called venture capital companies provide equity capital. But not just like that. If you want to go into fundraising, you have to be convincing. Prerequisites are a watertight pitch, a realistic understanding of the current company valuation, the amount of capital needed and the time frame in which the capital is needed.
Venture capital is a form of private equity financing in which venture capital companies provide capital to promising unlisted companies in exchange for a stake in the company. Those who want to grow their company with venture capital must first contact investors and convince them of the company's merits.
Often several months pass between the start of fundraising and the receipt of venture capital. The pitch only follows after the founding team has identified potential investors. Afterward, the company is preliminarily reviewed by the potential investors. If this goes well, a term sheet is signed, followed by due diligence. The capital will flow only when the investment documentation has been completed.
If you can't or don't want to wait that long, you can look for alternative forms of financing like the one offered by re:cap. With re:cap you can bridge the time to the next round and thus, optimize the upcoming financing round. At the same time, this increases your options when looking for investors.