The Landscape of Venture Capital Resources
Looking for ways to scale your business and acquire the resources you need to succeed? Consider using a venture resources firm. Venture resources firms like Cloudshadow go far beyond angel and venture capital, by also offering professional services.
Unlike venture capital, venture resource firms always can offer financial capital and professional services, such as software development and management consulting in exchange for equity. This is a great way to acquire the skills and expertise you need to scale your business with confidence. However, where does one start? How does an entrepreneur decide what is the best kind of venture capital resource to work with?
Types of Venture Capital Resources To Consider
If you are starting to think about next steps to truly scale your business, then you may be thinking about traditional venture capital firms. However, before you jump in, you need to take an honest hard look at your business and decide what your gaps are. Do you need financial capital, business connections, skills, or all of them?
If you just need capital, then a bank, angel investor, or traditional venture capital fund may work. However, if you need more than just money than it is time to start thinking about partnering with a venture resources firm where you can get the added benefits of value-added services in exchange for equity.
The Exchange of Equity
As they say, there’s no such thing as a free lunch, and unlike more traditional creditors, venture funds require an exchange of equity for the investment. If you are not comfortable with giving up part of your business just for money then maybe a traditional venture capital firm is not for you. If you want something more, or “more skin in the game,” then you should consider looking at a venture resources firm which will provide you with capital and services.
In the venture resources model where an investment firm is exchanging their services in exchange for equity, they are very incentivized to produce terrific work because their work product will benefit them in the long run. As a result of this, the level of professional services they deliver typically exceeds those you will get from a fee-for-service consulting firm, while at the same time having the ability to raise capital through the venture firm. It’s the best of both worlds!
If you think your business could benefit from financial investment and professional services, contact Cloudshadow to learn more about how we can help.