FAQ

What type of companies do you work with?

DC Venture Services advises early-stage and early growth-stage companies that have a large potential market for their products or perhaps even a global reach.  Our venture clients represent a wide range of industries throughout many different market sectors.

These businesses are the ones who are poised to become the leaders within their given industry. Companies that can prove they have experienced leadership on their management team, with a proven entrepreneurial spirit, and exhibit the ability to take direction.

What topics should I include in my business plan?

Your business plan at a minimum should include the following topics:

  • Description of the Business
  • Market
  • Products and Services Offered
  • Distribution Methods
  • Competition
  • Management Team Members
  • Financials (Including Balance Sheet, Income Statement, and Cash Flow Statement)
  • Three or Five Year Sales Forecast
  • The Deal and Use of Funds

What other costs are involved in raising money for my company?

Most of us have heard the phrase "It takes money to make money."  Raising funds without spending any capital is pretty much unfeasible in today's world.  There are numerous added expenses that may occur during the preparation, fund raising and closing processes.  These additional costs may be associated with the modification of a business plan, or with the creation of the offering memorandum.  Further potential costs may be associated with due diligence, travel, investor meetings, and legal fees.

What is the percentage equity that my company needs to deliver for an investment?

The amount of equity that our venture clients will need to deliver can depend on several different factors.  DC Venture Services will often take into account the amount of the investment, the valuation of the company, the stage of the company, the potential for growth, and the proposed exit strategy.  Although it may vary, typically the percentage of equity share ranges from 10-30% ownership.

What are different types of exit strategies?

Your company's exit strategy will mainly depend on what is most suitable for your business.  Exit strategies, or liquidity events that are the most common include Initial Public Offerings (IPOs) or Merger & Acquisition (M&A). M&A normally means merging with a similar company, or being acquired by a another company.

Is my business eligible to become a venture client and receive funding?

DC Venture Services is extremely selective about who we bring on as our venture clients.  Private Placement funding is not suitable for all types of businesses.  The size of the firm, the business model, the composition of the management team, current and future growth rates, and the prospect for future expansion may all play a role in determining whether or not a business is an attractive investment.  Some businesses may not be able to meet the requirements for reporting, corporate governance or have an appropriate management structure in order to meet our requirements.

What do investors look for in your venture clients?

Investors generally wish to invest in venture client companies that can demonstrate the following characteristics:

  • Display a high potential for growth
  • Offer a unique product or service
  • Well-developed business model
  • Management with a proven track record
  • A willingness for some type of exit

Where does DC Venture Services get its money?

DC Venture Services advises both individual and corporate investors.  Our investors may include institutional investors, such as pension funds, insurance companies, endowments, foundations, family offices, and high net worth individuals.  DC Venture Services provides a fiduciary responsibility to both our venture clients as well as our individual and corporate investors.

At a minimum our individual and our corporate investors need to qualify as Accredited Investors. We also may advise individual and corporate investor clients who are considered to be Qualified Clients and Qualified Purchasers.  Both our individual and corporate investor clients are generally able tolerate a higher risk that may be associated with early-stage and early-growth stage companies.

What information should my company provide before seeking funding?

DC Venture Services requires our prospective venture clients to initially provide us with a complete business plan.  The best business plans will often include much of the following information:

  • Executive Summary
  • Mission and Vision
  • Company Description
  • Products and Services
  • Industry Analysis
  • Target Market
  • Marketing and Sales Plan
  • Competitive Analysis
  • Management Team
  • Current Shareholders
  • Operational Plan
  • Personnel Table
  • All Past Financials
  • At Least Three and No More than Five Years Financial Projections
  • Funding Requirements and Use of Funds
  • Exit Strategy

When creating your business plan, you should aim to spend a considerable amount of time and provide only factual information.  Please keep in mind that DC Venture Services receives numerous business plans and requests for funding assistance.  Your business plan should be viewed as your selling document and you may only get one chance to present it.