The Top 5 Points To Be Considered By European Fundraisers

Contributed by Christopher, 01 July, 2014

It takes a lot to establish a business. From initialization to completion, many factors act behind this case. The market either local or global is no simpler now. It has gone highly provocative now. An entrepreneur needs to consider every aspect to introduce his campaign online. The major requirement for any business is the profit. This requirement becomes even high for the start-ups along with their prosperity.

The other challenging part is to compete with the already existing companies, providing same categories of products. Well, the conditions are even more complicated, if some start up business is all set to step into IT field.  Needless to mention, the world is getting technical. This has increased the demand of IT companies and hence more campaigns are stepping into this field to provide their services.

This is a fact that IT field provides an incredible growth, development and opportunities to the fraternities. One could find excellent ROIs and profits from this field but on the same side, the field also requires high capital money for a start-up to be established. And if the market is something lets say Silicon Valley, worth of its prestige then the things could be very well understood.

There are times when the development of any start up company or even an established company comes to a halt. Out of various probable reasons, one of them is the lack of funds which affect the growth of the company. The profits gained are used for the back up process. Now since all the gained money gets utilized in the development of the business, it becomes the situation of no profits and no losses.

This is the time when such companies need the requirement of funds for their growth or even sometimes for their establishment. However this is a process which needs utmost consideration at the time of its selection. To be more precise, an entrepreneur needs to be very well aware of the process while opting for the fundraising systems for growth and development of his campaign.

What actually is Fundraising?

This in general is a process which is implemented in practice to raise or collect money for a specific cause or reason. Apart from the business, fundraising may also be related used for various other causes and projects. These aspects provide the necessary financial support for the growth of project. Indeed the modes of providing fundraising help are different, but the concept used is same.

As far as fundraising in business is concerned then it has always been a buzz when it comes to starting a business in Silicon Valley. This has been in more news since European start-up companies have enrolled into this field providing a good scope for the investors. Hence this field now is of great importance for the fundraisers.

The Ultimate Prospects:

Silicon Valley has ever been one of the most preferable places for the investors. One of the reasons behind this fact is the self promotional environment of Silicon Valley.  This provides a great scope to the fundraisers thereby providing them the better prospects. Additionally, the Europeans also open everyday US tech blogs, which give it a look like everyday business in Valley. Further, it gives news and information upon various investment units prevailing in that area.

Higher Investment? The Reason:

No doubt, the fundraising investment in US is high. But have you known about the reason behind this factor? Actually, one of the astonishing facts behind the US startups rising more than that of the European start up is the higher costs. The statistical study reveals that the base salaries of employees in a start up company are extremely remarkable. Any other companies do not offer such high salaries to their employees. This major difference has lead to the higher investment in the Valley.

As per accountants, if the differences in the average investment size are compared then it may be found that European investors prove out better than that of the US counterparts.

Not A Perfect Idea For Europeans:

This may look unusual, but in actual it is the fact. Fundraising needs a lot more concepts and aspects to be considered upon. Moreover, this process is long and expensive i.e. more than the expectations of founders. Other than that, this process does not make it to an investment. Further there have been many entrepreneurs who have had poor experiences regarding fundraising investment in the US.

The Perfect Time:

Every facet has a perfect time when it provides better results. Fundraising investment is no more an exception too. To be more precise, there is a perfect time when the European Fundraisers could make their visit to the Silicon Valley and could expect for sure profits from their investments. Of course there have been many European start-up companies who have availed remarkable profits and excellent ROIs. The only thing is to be aware of right time

Author Profile:

Christopher, the author of this post is a chartered accountant. Apart from his profession, he likes to provide information upon various aspects of accountants and other relevant subjective topics. 

Tags: business | Investment | Europe | Invest | Other | Investment | entrepreneurs | employees | investment | services | environment | tax |

 

 





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