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Venture Capital Broker

About Startup Costs

The startup costs provided in this database include an approximate financial investment that will be needed to start the business. This is generalized information and should only be used as a yardstick to determine business startup costs. Your investment will vary based on factors such as equipment, transportation, licensing and permits, operating location, working capital and initial marketing and advertising budgets. Remember a successful entrepreneur is one who carefully researches and plans every aspect of a new business venture, including the financial investment needed to start a business and the working capital required to achieve positive cash flow.

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Business At A Glance

Venture Capital Broker

Startup Costs: $50,000 - $100,000
Home Based: Can be operated from home.
Part Time: Can be operated part-time.

About

Franchises Available? No
Online Operation? No

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Help entrepreneurs who need funding connect with VC firms.

Business Overview

A venture capital broker is simply a person that brings two parties together that share a common goal. The goal generally and ultimately is to create a profit. One party is the entrepreneur that is seeking capital to start or expand a business. The second party is a venture capitalist who lends entrepreneurs money for business financing in exchange for a high rate of return on the investment or a combination of company shares and a return on investment. The venture capital broker that successfully brings the two parties together is remunerated by way of commission based on the total amount of financing that was secured. Depending on the amount of money secured, the commission rate will range from a low of 5 percent to a high of 15 percent. Securing clients for the service is as easy as scanning local newspapers for business financing-wanted classified advertisements, and taking over the task of locating suitable capital for the venture. However, finding a source of financing can be difficult, so be sure to only represent clients that have a viable business concept accompanied by a completed business plan that reinforces the business concept.