Raising capital for venture projects is a mammoth task for entrepreneurs. Typically, a lender is skeptical of investing his money in first-time projects fearing its viability and certainty of returns. Therefore, venture capital advisory firms come to the rescue of such entrepreneurs by helping them find lenders for their projects. Providing venture capital solutions is one type of financial service provided by the firms.
These firms have a heterogeneous portfolio of both big and small clients. In many cases, entrepreneurs waste a lot of time struggling to raise the capital just to find out in the end that they are ineligible for it. Therefore, these firms first analyze whether their client qualify for venture capital or not. Then only they begin with further proceedings.
Some advisory firms have an expertise in a specific group of infrastructure sectors like telecommunications, media, power, etc. Apart from this, there are firms that provide services for investment in specific countries like China.
Advisory firms have a team of analysts who calculate the present value of future returns from the proposed project in order to determine the feasibility of the proposed project. They also take into account both market and non-market risk factors while calculating the value.
These firms have a research department that focus on industrial studies. They collate data, tabulate it, and use statistical tools to study the trends in various sectors. Most of the advisory firms have websites that provide complete details on the services been offered and their branch network across the country.