Raising Minor Funds for Early Phases of Financing and Funding (Venture Capital). Reasons and Measures

Both start-ups and established small and medium-sized enterprises with a high growth potential frequently face difficult conditions when it comes to funding their business expansion. Obstacles are especially big when the firm value is largely determined by its business idea, its market potential, or the commitment of the management, and when only few tangible assets can be put forward as collateral. Venture capital will bypass such obstacles by integrating venture capital funds managers on the board of directors.