If a person has no capital and has idea for a new business,he approaches venture capitalists.What is the profit ratio sharing between the capitalist and the person if the total investment is by the capitalist.
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If a person has no capital and has idea for a new business,he approaches venture capitalists.What is the profit ratio sharing between the capitalist and the person if the total investment is by the capitalist.
It will certainly depend on several factors:
-the level of risk is involved for them to front the money, so have a great business proposal ready.
-Who you approach. Some larger (more reputable) companies will typically have a 2-3% management fee and a 25-30% profit share.
Be careful and check references because there are plenty of scams out there as well.
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