Depending on the maturity of the business when the investment is done, venture capital investments can be seen as early-stage capital, seed capital or expansion-stage financing. However, the investment stage does not affect how venture capital funds operates.
To begin with, before making any investments, venture capital funds, has to raise money. Potential investors are given a prospectus of the fund after which they commit money to. Once a commitment is made, the fund's operators call all the potential investors and finalize individual investment amounts.
After that, private equity investments that have the potential of generating positive returns for its investors are sought out by the venture capital fund. This process involves the fund's manager reviewing business plans in hundreds, searching for potentially high-growth companies.
In addition to our management consulting practice, Brainsmiths Labs invests in select startup companies via direct financial investment or a combination of direct financial investment and consulting services.
We are entrepreneurs looking to invest in other entrepreneurs to help great ideas become great companies. Brainsmiths Labs provides capital and management support for startup companies and their investment strategy – from “A demo and a deck” through to Seed and up to Series A funding. We also help other early stage investors by bringing our consulting services to start-ups, enabling them to operate more efficiently and to achieve both their and their investor objectives.
Our strategy is to build and maintain a portfolio of startup companies that represent high growth opportunities in potentially disruptive technologies. We are experienced with the risks of early stage venture capital investments and believe in the power of entrepreneurs and their ideas. We have ourselves started successful companies and invest in people with passion, experience and management consulting practice knowledge.
We make either a direct financial investment or a combination of direct financial investment and management consulting services. Our investment vehicles can be either equity or convertible notes. We work actively with very early stage companies to help them refine their product/services concept, and their business and investment strategy and provide hands on management services.
As needed, our professionals work with and for a startup company to support a range of activities including performing market due diligence and analysis, business case development, optimizing product development processes and performing product QA and testing.
Venture Capital funding requires a business plan that the firm furnishes before the investors to convince them that their business venture shall be a success and thus leading them to invest in the venture. For an effective business plan the following key points should be addressed: