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-   -   What is the ratio of profit sharing in venture capitalism (https://www.askmehelpdesk.com/showthread.php?t=500078)

  • Aug 20, 2010, 11:16 AM
    sastryforu
    What is the ratio of profit sharing in venture capitalism
    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.
  • Aug 31, 2010, 07:34 PM
    bendingleconte

    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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