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Posts Tagged ‘risk’

What kind of risk are you looking for?
Thursday, July 23rd, 2009
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Risk takingThe old story is that 9 of 10 VC funded companies fail, but the successful one makes so much money that the VC makes money. Of course, VC’s are very different from each other, but generally VC’s focus on firms that can make something disruptive and have a huge upside. Another end is small companies that have very limited risk (e.g. local coffee shop, or consulting business), and those companies can get bank loans. But there is a large gap between these two ends. A lot of companies can grow nicely, start to make profit, maybe never make IPO or be acquired by Google or TimeWarner, but can still bring a nice return to investors.

Grow VC wants to have services, investors, and entrepreneurs for different risk levels. We hope that investors that want to invest with a lower risk and lower ROI expectation can find suitable companies from the service. We also want to help entrepreneurs that want to better control risks and are happy for smaller but profitable growth to find the right investors. It cannot be so that all companies must look for top level VC’s and play the all or nothing game. But for some disruptive ideas it is exactly the right game.

The best way to find the right investors and the right companies is an open market, where match-making can happen. This is the basis of Grow VC’s service. We also want to offer tools that help in match-making. We are happy to get ideas on what could be a good way to categorize companies and investors based on risk and return in order to make match-making easier. You can post your ideas, or register and give them inside the service, or email us.

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