What Are Venture Resources?

Malcolm Tatum
Malcolm Tatum

"Venture resources" is a broad term that is used to describe the various types of resources that are brought into play when providing venture capital to a startup business or to help fund a new project by an established business. For the most part, venture resources are provided by various types of venture capital firms, angel investors, and occasionally by banks and fund managers. While the focus of venture resources is usually on the subsidizing capital itself, the scope of resources may also include the utilization of business acumen and expertise that is extended by one or more of the investors.

Depending on the venture capital arrangement, investors may be entitled to receive compensation in the form of the repayment of the principal amount borrowed plus interest.
Depending on the venture capital arrangement, investors may be entitled to receive compensation in the form of the repayment of the principal amount borrowed plus interest.

One of the key venture resources is the generation of venture capital. This capital is typically used to get the startup company or the new project by an established company up and running. It is not unusual for investors to commit sufficient amounts of capital to not only launch the effort, but also to sustain the operation long enough for the effort to begin generating revenue of its own. Depending on the structure of the venture capital arrangement, investors may be entitled to receive compensation in the form of the repayment of the principal amount borrowed plus interest, stock in the newly launched endeavor, or a combination of the two.

Along with the actual capital that is invested in the endeavor, venture resources may also include access to the expertise of the investors, drawing on those abilities to assist in the operation of the new startup during its early period. For example, if one of the angel investors happens to also have extensive experience with financial matters in a corporate setting, he or she may serve for a time as the chief financial officer for the new startup, at least until the business is stable enough to hire a permanent CFO. The ability to draw on resources of this type is actually beneficial for everyone involved. Investors have the chance to further protect their investments and increase the chances of earning a return, while the new startup can funnel the available capital into other essential areas such as product development, marketing, and other tasks that are key to successfully launching a money-making operation.

All types of venture resources come together for the purpose of increasing the chances of success for the funded venture. By contributing not only capital but also other resources to the effort, investors and the owners of the new project can work together and overcome a number of obstacles as the venture launches and begins to find its place within the business community. While not always in the form of tangible assets, venture resources can make the difference between becoming a profit-generating concern and never being able to establish a presence in the marketplace.

Malcolm Tatum
Malcolm Tatum

After many years in the teleconferencing industry, Michael decided to embrace his passion for trivia, research, and writing by becoming a full-time freelance writer. Since then, he has contributed articles to a variety of print and online publications, including wiseGEEK, and his work has also appeared in poetry collections, devotional anthologies, and several newspapers. Malcolm’s other interests include collecting vinyl records, minor league baseball, and cycling.

You might also Like

Readers Also Love

Discuss this Article

Post your comments
Login:
Forgot password?
Register: