Is Your Company VC Fundable?
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Is Your Company VC Fundable?

A complete guide to the rules of VC

Susan Hyttinen and Elmo Pakkanen
Soaked, 2022
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The global venture capital (VC) market continues to boom, and so entrepreneurs often believe that VC firms will readily fund their idea, product or service. The reality, though, is that securing funding is difficult, and many companies miss out on capital because their founders do not understand the fundamentals of VC. In this comprehensive, accessible primer, consultants Susan Hyttinen and Elmo Pakkanen discuss the VC essentials that start-ups need to know to become viable investments. Entrepreneurs, start-up executives and investors will discover valuable insights in this informative report.

Summary

Venture capital (VC) firms seek out early-stage companies with the potential for high returns.

VC is a staple ingredient for start-ups and early-stage companies. However, venture capitalists have specific parameters and frameworks for allocating funds to emerging companies, and many young firms do not qualify for funding under the VC architecture. To secure VC dollars, start-up founders need to understand the nuances of the model. First and foremost, venture capitalists seek high returns, given the greater risk associated with entrepreneurial firms.

A VC general partner (GP) is the final arbiter in deciding whether an investment will occur, using funding from limited partners (LPs) that include...

About the Authors

Susan Hyttinen and Elmo Pakkanen are professionals at Soaked by Slush.

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