1: the key to wooing

4: venture capitalists other than having a

6: great idea in a promising industry is to

9: ask for money at the right time in a

10: VC's lifecycle here are the funding

13: phases for a startup and how they

14: correlate with a VC's lifecycle. phase 1

17: seed funding. seed funding usually comes

20: from you the entrepreneur's bank account,

22: angel investors potentially mom and dad

24: or crowdfunding. seed money allows you to

27: solidify a talented team and a business

30: plan which is required when it comes

31: time to talk to VCs. right now a company

34: called Neptune is raising seed money

35: through Kickstarter with plans to beat

37: Apple to making a smartphone the size of

39: the watch. Phase two round one of funding

42: VCs start when a group of people agreed

45: to put money in a pot and not see

46: returns for 10 years. if the VC is worth

49: 100 million then in round 1 they will

51: invest about one third of the fund in a

53: variety of companies. as an entrepreneur

55: this is when you want your business idea

57: to be noticed and funded. SquareTrade Inc

60: a startup offering warranties for your

61: tech gadgets recently disclosed

63: receiving two hundred and thirty-eight

65: million in round one from eleven

67: different funds phase three round two of

70: funding provided your business is doing

72: well you may receive a second round of

74: funding after three years at this point

76: in the VCs life cycle the firm will look

78: at their investments weed out the ones

80: that went belly-up and invest more in

82: companies doing well Photobucket

84: recently went in for an additional and

85: they claim last round of funding from

87: VCs for somewhere between five and ten

89: million faced for expansion now your

93: startup is three to five years old and

95: hopefully close to turning a profit on

97: its own at this time funding will come

99: from subordinated debt or preferred

101: equity this is the expansion phase

104: Twitter appears to be in phase four

106: after receiving 15 million in 2008 it's

109: waiting to IPO. until I can earn steady

111: profits for an entire year this growth

114: money doesn't come from VCs but help

116: startup to push past the funded phase

118: into the next level which is phase five

121: IPO or sale by now your startup is five

124: to ten years old you've either made it

126: or fold it. now the venture capitalists

128: are ready for their payday when you sell

129: or Republic. most VC firms enjoy seven

132: hundred percent return on their

134: investment in companies which go public

136: however many of their investments won't

138: make it to phase five to watch more

143: videos from the minute MBA series check

145: out online MBA com