Funding for High-Growth Companies

Venture Capitalists

Venture capitalists (VCs) are firms or companies that pool money from their team of investors into a combined fund to invest in emerging businesses. A typical investment is more than $1 million. VCs are looking for high-growth potential companies and will build a relationship to help them reach their next milestones. They invest in established companies that have an MVP in place and are looking to move quickly, get a competitive edge, are ready to merge, and have measurable and financial proof of a scalable business.

This exchange of funding support involves giving up some ownership or equity in your business to an external party. In return for risking their money, they reserve the right to supervise the company’s management practices, often involving a seat on the board of directors and an assurance of financial and managerial transparency.

Boomerang Catapult is a venture capital firm based in Traverse City. Other VCs to consider include:

• CORI Innovation Fund
• Grand Ventures
• Wakestream Ventures

Pros:

• Funding in the amount that VCs contribute can support fast growth for your company
• In addition to capital, VCs can have a big impact through their connections to investor networks, mentorship, and leadership
• Typically provides a faster path to your next business milestone versus relying on business revenue alone

Cons:

• Founders must give up a share of ownership
• Large VC firms can be very demanding with a focus purely on ROI
• VCs may drive leadership changes – including removing founders from leadership roles – within your company

Best for:

Series A and beyond, traction and scaling companies who need a large amount of financing to get established in the market

Learn more:

• • Venture Capital: What Is VC and How Does It Work? (Investopedia, 2023)
  • Venture Capital Investing (CFI, 2023)
  • Understanding Venture Capital (Forbes, 2022)