Josh Tarter Talks Keys to Venture Capital Investing

As someone who is highly experienced in business administration and operations management and has taken part in venture capitalism before, Josh Tarter has learned a lot over the years in regards to the dos and don’ts of venture capital investing.

A venture capitalist is defined as an investor like Josh Tarter who provides the capital for a startup business or supports small companies that are hoping to expand. The reason some investors are interested in making such large investments in these companies is because they can earn huge returns if the businesses are a success.

Venture capitalists can also take big losses if their investments fail, but usually these types of investors are wealthy enough to begin with that the potential reward outweighs the risk of putting money into an unproven entity.

Some of the company characteristics that venture capitalists like Josh Tarter seek out when choosing between businesses to get involved with are a strong management team, a unique product or service, a large potential market and a strong competitive advantage within that market. A venture capitalist like Josh Tarter also tends to look to invest in industries that they are familiar with or knowledgeable about so that they can bring more to the table than just cash flow.

Some other factors that Josh Tarter urges others to keep in mind before making venture capital investments are as follows:

Accurate Numbers: Venture capitalists and startup businesses can get very little done without having accurate numbers in front of them. These should be numbers that speak to the company’s past performance and future potential earnings. If a business cannot present these numbers in a precise and organized way, it might be best to stay clear.

Potential Earnings: Is there money in the market the company is entering and what are the potential earnings for the business you’re investing in? These are questions that every venture capitalist should ask themselves before proceeding too far.

Company Integrity: If a company has a bad reputation and is said to be dishonest, I’d think twice about investing money into their business. Venture capitalists need to work with companies they can trust.

Experience: Although it can be hard for a startup or expanding small business to have as much as experience as some of its larger competitors, it is still easy to differentiate a company that knows what it’s doing from one that does not. Venture capitalists need to make sure the management team they’re investing in has a firm grasp on the product or services they provide.

Motivation: Venture capitalists like to get a gauge for how motivated the management team of a company is before deciding whether or not to invest. The most successful startups are typically those who have a team of highly motivated individuals backing them.

An Exit Strategy: It’s hard to think about the end at the very beginning, but a savvy venture capitalist will always make sure they have an exit strategy so that they can get their money back in a number of ways and step away from being an investor. Some examples of this include if a company goes public, a company merges with a competitor, or a company simply buys out the venture capitalist.

Be sure to visit this blog again soon for more business and investing information from Josh Tarter.