“If you have a bank account, you have customers that are willing to pay you money. If you can solve a problem that somebody has, you're literally in business,” explains Steve Valentor, founder and president of Polynomial Ventures, a Chicago based venture capital firm. Steve has 30 years of experience within the technology industry and his venture capital firm focuses on early stage tech. In today’s episode, Steve talks about what entrepreneurs and aspiring entrepreneurs need to know about money, company valuation, and attracting potential investors.

The venture capital industry has a very high rate of return, however, it also has a high amount of risk involved. Investors are looking specifically for businesses that will likely be able to return the full amount of money invested. The majority of start-up businesses will fail in the long run, so it is important to really think about what problem you are solving, who your customer base is, and what your valuation is for your company. Not every entrepreneur needs to go the venture capital route to get their business rolling. Many businesses are not suited for that route and instead can seek other means of investment that are not necessarily cash-based. Someone may be willing to supply you with an extra real-estate property for example, or suppliers may be willing to cut deals with you in order to get your business going.

There are many ways to fund your business, but one important thing to keep in mind is the more money you borrow, the more you will have to return to your investors. Really figure out your valuation for your company and do not take more money than you actually need. Learn more about dos and don’ts for new entrepreneurs and find out what qualities venture capitalists are looking for in an investment opportunity.

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Connect with Steve Valentor:

Website: https://www.polynomial-vc.com/

LinkedIn: https://www.linkedin.com/in/stevenrvalentor/

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