How To Build A Great Venture Capital Database
Venture Capital Database, otherwise known as VC Database, is an indispensable online resource exclusively for small to mid-sized businesses, venture capital investors and larger cap companies looking for venture capital funding. With more than 5,000 companies and more than 60,000 private investors, Venture Capital Database provides the most comprehensive resource of data on private and public equity financing in the U.S. As one of the largest and most respected online investment resources, VC Database offers a simple yet highly useful search tool for investors and business professionals seeking venture capital funding. Additionally, this database is also a great tool for entrepreneurs and new business owners to find information, learn about venture investment programs and find information about individual venture capital firms.
Data fields that are especially complex and not presented in standard Excel spreadsheets are provided by venture capital databases. Fields related to the company name, address, phone numbers, financial data, past and current financial statements, management team, shareholders and partners and litigation history are some of the most commonly available data fields. The company name is generally the first or last name of the company and is usually the safest option. However, if the company name is not available or if the company is new, the names of partner companies may be appropriate or the need for more data fields may be greater.
Most venture capital databases offer searches that are fully flexible and allow users to refine their results to yield only those investors meeting a given set of criteria. One such criterion relates to the length of time the person has been involved in his or her venture capital business. For this reason, if someone has been in business less than five years, he or she probably is not considered a long-term investor. Similarly, people who have been involved in venture capital for more than five years are generally considered very experienced and are better suited as long-term investors. Also, people who have brought significant knowledge and skills to the venture capital firm are usually preferred over other less experienced or unqualified investors. This is because these investors have more experience and skills and have better business plans and projections.
An excellent approach for finding great venture capital database services is to request information from investment banks, which have experience in managing venture capital firms. There are two types of venture capital investment banks; general purpose and venture capital database. General-purpose banks tend to offer a broader range of financial data and loan packages, while venture capital firms that tend to focus on more specialized niches often maintain exclusive databases with very specific guidelines. It is advisable to request a detailed portfolio from each of the investment banks in order to build a great venture capital database.
A venture capital database should include information about private equity firms, venture capital investments, early-stage companies, venture capital syndicates and other categories relevant to financing and capital structure decisions. If possible, it should also provide information about new companies classified as high risk, venture capital funding, and venture investment fund. The quality of a venture capital database is directly related to the amount of research that has been carried out into its compilation; the greater the amount of independent research carried out, the more accurate and useful the results will be.
While sourcing the appropriate information from the venture capital database, it is important to note that a large database does not necessarily indicate reliability. Moreover, startup companies could have entered into early-stage financing at rates much higher than the rates available for established companies. In addition, a startup could have recently raised outside funding. In such a scenario, the accuracy of the information provided in a startup’s VCD could be negatively impacted. It is advisable to carry out further research on the startup before sourcing it.