In recent years, investment in venture capital has been widely considered to be a challenging yet rewarding asset class. Whenever a good idea is backed by the right funding, expertise and experience, it can lead to a successful company, innovative products, new employment and healthy returns.
Of course, it’s easier said than done. Identifying the right partner—for either the entrepreneur or the venture capitalist—and negotiating through what may be very different initial visions for the company’s future are all potential challenges that could stand in the way of success.
In theory, the benefits of venture capital are abundantly clear. By providing startup capital that wouldn’t be available otherwise, experienced business minds get to share their expertise. However, a great idea that’s insufficiently funded or brought to market without the right strategic vision, is unlikely to meet its full potential.
All risks aside, venture capital greatly enhances a new company’s expansion potential, giving them networking opportunities that may otherwise be unavailable to them. Too often have we seen barriers such as outstanding and innovative products being held up by supply-chain issues. We may even be unaware of some projects that never saw the light of day due to inexperience in launching and scaling a business.
Getting a negotiation right, striking the right balance to plot a course to sustained and sustainable growth can lead to enhanced and long-term rewards for both the business and the venture capitalist who backs them. But it’s not, of course, as simple as that.
The challenges to a successful venture capital enterprise are perhaps just as clear. How do you identify the right investors? As an investor, how do you choose the right company? How do you strike a balance between a startup and a backer with different ideas?
So all of these unanswered questions can lead to significant challenges for anybody considering a venture capital initiative. For example, if you’re an entrepreneur, the challenge is finding a supportive and effective partner. For the investor, identifying the right opportunity, embedding due diligence processes into a startup enterprise and managing growth can be just as difficult.
This perceived conflict can lead to a negotiation bottleneck, obstructing the path to success or even halting the project altogether. Negotiations must be handled with care and discretion to avoid such roadblocks, and creative solutions need to be developed in order to surmount them should they arise.
IE’s Venture Capital program gives both sides of the negotiating table valuable insights into the process and challenges of venture capital initiatives. Whether you’re a startup founder or an ambitious investor, a private equity firm or a corporate venture capital group, this program offers a practical platform for honing essential, interpersonal financial skills.
Through combined practice-based theory, group discussion and real-world case studies, participants will learn how to identify the right opportunity, refine due diligence practices, manage portfolios to maximize returns and consider exit strategies. Investors and entrepreneurs will share the perfect platform to meet and build relationships that will drive value creation in the modern market.
A world-class faculty of industry experts, along with a diverse, multinational environment offer an ideal backdrop to teach participants the relevant approaches to the venture capital process. For more information on this program, click here.