By Rotn ESV Modeyin Bayo Kingsley
Venture capitalists play a critical role in the growth and development of both new and existing business enterprises. They are equity shareholders who invest in entrepreneurs and provide much-needed capital to fuel business growth. These investors are exceptionally knowledgeable about the industries in which they choose to invest, often backed by experienced market research departments that provide crucial information to the enterprises.
Venture capitalists are not just financial backers but also valuable resources eager to see businesses succeed. They offer consultation services to assist entrepreneurs in various aspects of their business operations, leveraging their industry expertise and networks.
One of the key characteristics of venture capitalists is their proactive approach in maintaining frequent contact with the entrepreneurs they support. Through these interactions, they provide access to potential customers, suppliers, and professional services, effectively acting as mentors without taking over the management of the businesses they finance.
They are primary investors who prefer to stay in the background, allowing entrepreneurs to retain control over their ventures. However, they may intervene if the business is facing significant challenges to help steer it back on track.
Venture capitalists invest because they believe in the capability of the entrepreneurs they support. They are convinced that these entrepreneurs have the potential to succeed and, thus, are willing to provide the necessary capital and resources.
It is important to note that most venture capitalists do not advertise their services. They can be accessed through major accounting firms, securities brokers, trade associations such as the Association of Small Business Owners of Nigeria( ASBON) offering resources like Networking, Financial Support, Research access and Private Equity and Venture Capitalist Association (PEVCA) which serve as the private body supporting the Venture Capitalist and Private Equity industries within Nigeria
In conclusion, Venture Capitalists are essential partners for entrepreneurs, providing not only financial support but also valuable industry expertise and networks that can significantly enhance the chances of business success.
Rotarian (ESV) Modeyin Bayo Kingsley is the 18th President of the Rotary Club of Olambe District 9112, Lagos State.
