Frequently Asked Questions
What is Venture Capital?
Venture capital is equity capital provided to young, high-growth private companies to enable product development or to grow operations. A venture capitalist provides the funds needed and at times financial management, recruiting, and industry expertise to help improve a company.
How do I approach Denko Group with a business plan?
Referrals are the best approach for a prompt review. A short, concise summary of the plan is preferred (usually fewer than 10 pages) to convey the idea, team strengths, and investment needs.
If Denko Group is interested, what happens next?
We will call or email you (usually both) to clarify points in the plan and discuss some of the issues. If interest continues, then an invitation follows for a face-to-face visit with the partner. Following this meeting (half presentation and half Q&A), we will then request information to complete due diligence. If initial due diligence is satisfactory, an invitation is extended to present to the entire partnership.
Is it possible to get funded without a business plan?
An executive summary usually is required. A full business plan is not necessary for seed round financing or incubation opportunities. Regardless, you should be able to answer questions concerning the important components of the business plan.
Which components of the business plan are most important?
Your executive summary or business plan should include the team members and their backgrounds, a description of the product/service, an overview of the market and its competitors, a discussion of the company's intellectual property (patents not required), revenue model (how you plan to make money), and financing needs.
How much does Denko Group invest?
We invest in early stage companies. Generally the first or second post-seed financing for the company that is completing the development of a new product or building initial sales momentum. Our initial investment is typically from $500 thousand to $3 million.