American InterContinental University
MGMT422-1301A-01: Professor William Becker
March 14, 2013

A venture capital firm is a company that invests money into small businesses that have the possibility of achieving very fast growth and produce huge surpluses (Lambing & Kuehl, 2007). Because venture capitalists normally focus on a particular industry like health care, biotechnology, etc, the entrepreneur that is looking for venture capital needs to conduct some research in order to decide which venture capitalist will invest in their particular industry (Lambing & Kuehl, 2007). I do not think there is a definite answer on the type of venture capitalist to look for. The entrepreneur must know which industry he/she is in, do his/her research, and go from there.
After doing some research, I think that a venture capitalist would like to see all financial documentation for the business that it will potentially invest in. They also want to see tax rates for capital gains (Lambing & Kuehl, 2007). When I say all financial documents, the business may also want to include at least five years of income statements, balance sheets and cash-flow statements (Peavler, 2013). They basically need to know what and how much of a risk they will or will not be getting into.
Trying to close a deal with a venture capitalist entails many things. To do this, there are quite a few steps. First, the business must decide if they actually need venture capital. If it is decided that VC is needed, the business must find a VC that is right for them. Next, the business presents their business plan. The business plan will be the biggest deciding factor for the VC to invest in you or not.
The business must then make a very convincing presentation. After the presentation, the business must make sure the VC has no questions. After all of this is done, the VC will make their