How Do Venture Capital Investors Add Value To Portfolio Companies?

Emerging growth companies are always eager for capital to finance growth. Capital in the monetary sense is in the forefront of every entrepreneur’s mind when it comes to seeking funding from venture capital and private equity investors. And for good reasons. Without the necessary capital, it is hard for an enterprise to build up its business. For any business to grow, it needs to hire the right talent, build the team, introduce the right products etc. Recently, a well-known venture capitalist in China commented that today’s China is a heaven to entrepreneurs. There is a fair bit of truth to that statement. Whereas 15 years ago it was difficult to find a venture investor active in China, today’s China is awash with seasoned venture investors. Capital is abundant. Chinafocused funds that are to the tune of $200 million and up seem to be an increasingly common occurrence. What entrepreneurs should bear in mind when looking for investors, however, is that beyond the supply of capital, there are other important – perhaps equally important – attributes that entrepreneurs should seek in a potential investor.