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What do venture capitalists want in return for investments?

If you are an aspiring commercial real estate developer, you are likely chomping at the bit to get in on the opportunities that seem to abound in Florida’s thriving market. You may even have a project in mind that you are sure will prove successful. Whether your idea involves building condominiums or commercial business facilities, it will take money to bring your plans to fruition.

When it comes to securing the funds you need to get a project up and running, you have a couple of options. One option is to take out a loan from a financial institution. However, a financial institution may require regular payments. This can become problematic if your project experiences delays or unforeseen expenses that prevent you from having the cash on hand to make the payments.

Another option is to work out a deal with a venture capitalist. Simply put, a venture capitalist is an individual or entity that provides investment money to new businesses. Working with a venture capitalist can offer a variety of benefits. First, they can offer their expertise to help you in your enterprise. Also, having a venture capitalist can lend credibility to your fledgling business.

What does a venture capitalist want in return for an investment? Well, their money buys a stake in your new company. Since they are sharing in the risk of the investment, they typically want a proportional return. This means that for all intents and purposes, you are entering a partnership with the venture capitalist.

It is a common and useful practice for a new business to team up with a venture capitalist. If you choose to go this route, it is important that you choose the company or individual who is right for you. You also want to negotiate terms that meet your needs and will allow you to reap the rewards you are due.

In order to protect your interests when working with a venture capitalist, it may be helpful to contact a commercial real estate attorney. The attorney could help you go over your needs and look over any contracts you may be considering.