Business At A Glance
Startup Costs: $50,000 – $100,000
Home Based: Can be operated from home.
Part Time: Can be operated part-time.
Online Operation? No
A venture capital broker is simply a personthat brings two parties together that share a common goal. The goalgenerally and ultimately is to create a profit. One party is theentrepreneur that is seeking capital to start or expand a business.
Thesecond party is a venture capitalist who lends entrepreneurs money forbusiness financing in exchange for a high rate of return on theinvestment or a combination of company shares and a return oninvestment. The venture capital broker that successfully brings the twoparties together is remunerated by way of commission based on the totalamount of financing that was secured. Depending on the amount of moneysecured, the commission rate will range from a low of 5 percent to ahigh of 15 percent. Securing clients for the service is as easy asscanning local newspapers for business financing-wanted classifiedadvertisements, and taking over the task of locating suitable capitalfor the venture. However, finding a source of financing can bedifficult, so be sure to only represent clients that have a viablebusiness concept accompanied by a completed business plan thatreinforces the business concept.