The vital entrepreneur: high impact at its best

VC-backed companies

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Engines of innovation

Despite challenges in the last few years due to the uncertain exit environment and associated fundraising trials, venture capital firms continue to play a central role in the growth of many high-impact entrepreneurs.

VC is still one of the best options to fund the early and scale-up stages for innovators that are disrupting incumbents and creating new market niches.

EY - The vital entrepreneur

Why venture capital?

While many start-ups begin life with funding from friends, family and angel investors, they often go on to scale their business with one or more rounds of venture capital.

As one entrepreneur recently told us, “I nailed the business model with angel investment, and I scaled the business with VC funding.” Beyond funding, these high-impact entrepreneurs also reap other benefits from the right VC relationships, including:

  • Patient and timely capital, which often can be further leveraged with debt
  • Experience of the VC general partners in scaling other companies
  • Connections with potential customers, partners and suppliers
  • Experienced talent to draw upon
  • Shared vision for future growth of the company

By taking an equity stake in the company, VCs share the risks and rewards that are an integral part of growing a business — a real incentive to help these entrepreneurs make it to the next level.

Through board seats and frequent interaction, they offer seasoned and tempered strategic advice to young companies in areas such as expansion, production, marketing and selection of key executive personnel.