Venture Capital

James J. Pastoriza
Managing Partner
Telecommunications Development Fund

Assisting innovative companies with energetic management teams achieve business success is the most important, most rewarding part of the venture capital experience. The execution of investment documents and the delivery of funds is a necessary, but not sufficient component of the successful venture investing effort. Once the deal is closed, a close investor-entrepreneur working relationship is crucial to the desired outcome for any new investment. It is a given that every business will face significant market challenges on the road to becoming a high growth, high revenue, high profitability, going concern. The need to successfully address these challenges is why the working relationship between TDF and the management team of the business is so important to us. When we make an investment, hoping that the venture performs better than anticipated is not enough. We work with the entrepreneurial management team to make sure our hopes become realities.

Though there are variations from one venture capital firm to another, most deals executed by venture firms share similar characteristics. This classroom is intended to provide you, the entrepreneur, with a general picture of the industry and a starting-point-understanding of the investing process. The classroom will help you identify the characteristics of companies that are most attractive to professional investors, the kind of information investors need to understand your business and the kind of preparation necessary before you approach an investor.

There are several pieces of advice I would pass along to every entrepreneur. Educate yourself about the process. Make sure your business provides the high growth opportunity sought by investors. Utilize the services of good professional advisors. Finally, establish in your own mind what to expect when seeking equity capital. This is a big homework assignment, but one that will pay off well in the end.