Grant Alabama, a small town by the foothills of the Appalachian Mountains in Northeast Alabama. This town is in Marshall County and is nestled at an elevation of 1,310 feet. Grant has a rich history.
It was founded in 1887 and has earned the distinction of being one of the scenic attractions in the state of Alabama. Beautiful scenic routes and great country home atmosphere, Grant is pretty much an ideal place for both pleasure and business.
For business, Grant, Alabama could foster to some wonderful opportunities for investors and entrepreneurs alike. However, businesses which lack the right amount of funds face this almost unsolvable problem. The answer is clear. These businesses or entrepreneurs need some sort of investment financing, they need venture capital investing.
Venture capital is a financing tool used by wealthy investors, banks and financial institutions to companies that lack the funds to expand grow or develop. This type of investment is common for companies that are still starting out. What these companies do is that they submit proposals to venture capital organizations justifying why investing on them is a good idea.
For the venture capitalist, investing on such companies is very risky. These investors are basing their decision to invest on pure assumptions and a whole lot of faith that the company will be able to give them a considerable and worthy profit.
How does it work? When investors decide to put venture capital investments on a company, they are not only putting their money onto the welfare of a company. In effect they become part owners of the company and are entitled to managerial and operational powers.
The venture capitalists have pretty much the same power over the company as the real owners do. Even if some businesses view this power as constrictive of their development, strangely this power too has some benefits. The knowledge, technology and resources of the investors can trickle down to the entrepreneur's business endeavors making their chances of success bigger and the road to that success shorter.
But the risks are indeed great. With no government protection whatsoever, a small miscalculation the company can be ruined and the venture capitalist can kiss the money they invested goodbye.
That's why venture capital organizations take extra effort in screening applications for venture capital. They would like to lessen the risks as much as possible and make sure that there's a better chance that they can get a better value for their investments.