Business Purchase Financing: Venture Capitalists

Venture Capitalists: a potential funding option

If you are looking to finance your business purchase through investors, venture capitalists are an option. 

Venture capitalists have become more eager players in the financing of independent businesses. Previously known for going after the high-risk, high-profile brand-new business, they are becoming increasingly interested in established, existing entities.

This is not to say that outside equity investors are lining up outside the buyer’s door, especially if the buyer is counting on a single investor to take on this kind of risk. Professional venture capitalists will be less daunted by risk; however, they will likely want majority control and will expect to make at least 30 percent annual rate of return on their investment.

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