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Venture Capital Broker

Business At A Glance

Venture Capital Broker
Startup Costs: $50,000 - $100,000 About
Home Based: Can be operated from home.
Part Time: Can be operated part-time.
Franchises Available? No
Online Operation? No

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.

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