Title: Silicon Valley Startups See Cash Everywhere
Author: Rebecca Buckman
Reference: http://www.startupjournal.com/financing/capital
Presenter: Ian Platt
Maybe you are a techy looking to start a business in some computer related field. Maybe,
however you don't have the capital to get your server up and running and hire
employees. Well maybe you need to relocate to Silicon Valley. Silicon
valley is a extremely attractive site for investors do to the high success rate
of products that are created from the small business that exist in the area. Pre-emptive
financing has become extremely popular due to the technology boom that has taken
place within the past few decades.
A little history is in order to set the stage for your next big leverage. Silicon
Valley is a business districted in California that is considered the Mecca if
computer research and technology in America and really the world. There
fore it is no wonder that such companies as Microsoft, Apple, and IBM originated
from this location.
Ever since the economic boom of computers began in the 1980's, Silicon Valley
has been a prime target for venture capitalists. Venter capital is a capital
provided by outside investors for financing of new, growing, or struggling businesses.
Venture capital investments general are high risk investments but offer the potential
above average returns. A venture capitalist is a person who makes such
investments.
A reason for finding a good location for your business is because you might be
able to get "pre-emptive financing." Pre-emptive financing happened
when a venture capitalist seeks out a promising start up business and offers
it money out of the blue, before the company tries to raise second or third round
of cash.
