Venture capital firms invest in new and upcoming companies, playing a major role in the success or failure of companies they choose to finance. Atlanta is home to some of the most notable venture capital firms in the country, and entrepreneurs should be familiar with their services if they’re looking to start a business in the Southeast region of the US.
Many newer ventures are funded by venture capital firms. The companies they invest in usually see some type of return, whether it’s through an initial public offering or by selling to another larger company.
List of Top Atlanta Venture Capital Firms
There are many venture capital firms, but these are the most notable firms headquartered in Atlanta, Georgia:
Each of these firms has a different focus and area of expertise. It’s important to do your research and find the venture capital firm that’s the best fit for your business.
What is Venture Capital?
Venture capital is a type of investment that is provided to new and upcoming companies. The venture capitalist usually receives some type of return on the investment, whether it’s through an initial public offering or by selling the company to another larger company.
What Types of Business Use Venture Capital?
Venture capital is typically only used by new and upcoming startups, especially ones that are looking to expand or develop a product. These innovative entrepreneurs often lack the necessary funding to start a company, which is where venture capital comes in.
Companies in the following industries often look to venture capital firms for help:
- Clean Energy
- Life Sciences
These industries build pioneering enterprises that bring game-changing technologies to the market, which in turn creates a great return in investment for the venture capital firm.
Tips for Attracting Venture Capital Firms in Atlanta, GA
1. Have a product
In order for venture capital to invest in your business, you need to have a good idea and a working prototype of the product. Even if it’s not perfect or complete, at least show that you have something going on.
2. Have an excellent team
Venture capitalists always take note of the founders and how experienced the team is with certain skills needed for start-up success such as marketing, design, engineering etc.
3. Be transparent about what your company does
Investors want certainty that their money will be well spent so it’s important to let them know exactly what you’re doing from day one. This also includes thinking critically about where your company could go in 3 – 5 years.
4. Have a good business plan
Venture capitalists are in the business of making money, so it’s important to have a thorough venture capital business plan that shows you are capable financially and knowledgeable about your industry.
5. Don’t ask for too much at once
Funding shouldn’t be based on how much money you need to start, but how much you can provide in return for it. So be diplomatic about what you’re asking for and consider their feedback.
6. Do your research
Know who is investing in your business: What are they looking for? How big is the fund that’s investing? Is it just one person or an entire venture capital firm? These are all things to consider when determining who you want to invest in your company.
Understanding the Stages of Venture Capital Funding
When a business is first starting out, it’s often referred to as being in seed or early stage funding. This is when the business is typically too small to attract the attention of venture capitalists and needs to find other ways to get money.
One common way for a startup to get money is through a startup accelerator. These are organizations that provide funding, mentorship, and office space in exchange for a percentage of the company.
Once the business has a product and is generating some revenue, it’s usually in the startup stage. This is when a business seeks investment from venture capitalists in order to expand and grow.
If the business is successful, it will eventually reach the growth stage where it’s generating a lot of revenue and is going to expand into a new market or open a second location. This is a good time for the business to take on investment from venture capitalists.
Sometimes companies will reach an end point where they no longer need funding from venture capitalists. The business may have been sold, gone public, or simply feel that it doesn’t require any more capital for growth.
Other Active Investors in Atlanta, GA
In addition to venture capitalists, there are other types of investors that businesses can turn to for money. Angel investors are individuals who invest their own money in a business in exchange for a share of the company. They often provide mentorship and guidance in addition to capital.
Businesses can also get loans from banks or a private equity firm. Loans are a good option for businesses that can offer collateral, such as a building or equipment. Private equity firms are similar to venture capitalists but typically invest large sums of money, sometimes in the millions of dollars.
For many companies, early-stage venture capital is a very appealing option because it provides an infusion of cash without requiring a lot of ownership in the business. It’s often a good option for young companies that have promising futures but need funding to take off.
Atlanta has a number of well-established venture capital firms that are looking for promising opportunities to invest in.
Atlanta, Georgia Entrepreneur Resources
The US Small Business Association Georgia district web page: https://www.sba.gov/district/georgia
Volunteers at Score Atlanta help educate people that are thinking about starting a small business. This is a good organization to look into if you aren’t sure about getting started on your idea: https://www.score.org/atlanta
News and happenings in the Atlanta area, with in-depth reporting that covers all the most important stories focusing on local businesses: https://www.bizjournals.com/atlanta/
The Atlanta Chamber of Commerce website: https://www.metroatlantachamber.com/
How Growthink Can Help
Growthink is a national business consulting firm headquartered in Los Angeles. Since 1999, our business consultants experts have written more than 4,000 strategic business plans for entrepreneurs, small businesses, mid-sized firms, and Fortune 500 corporations seeking funds from venture capitalists, angel investors, or other investors. We can help your business, too!
Learn more about Growthink’s business plan consulting services and methodology.