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FAQ's

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Below is a list of commonly asked questions and corresponding responses. Please note that we will continually be updating this section so please check back periodically.

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Q: How much do you invest?

Our typcial Investment sizes are as follows: Seed - $100k to $1M; and Venture - $1M+ to $6M. While we may deviate from these amounts in exceptional cases, it will still be the case for almost all of the companies that we fund.

Q: How do we get funding for our startup?

You simply apply online. If it fits within our investment sector focus, our investement areas, and we feel that after signficant due dilgience it's a large, scalable opportunity with a management team that can execute on it we will craft a term sheet and make an investment.

Q: When will the application form for the next investment cycle be online?

You can apply online at any time during the year. Just apply on our "Submit your Funding Request" page and we will get back to you.

Q: Do we need to write a business plan?

Yes, while we will help to ideate on your business plan, we expect you to at least complete a working draft of your business plan as it will help you to clarify your strategic, product, marketing, and execution plans end to end.

Q: Will you sign an NDA? How do I know you won't steal my idea?

No, we won't sign an NDA. No Venture firm would at this stage. The informal commitment to secrecy on your application form is more than any VC would make.

Q: Why do most Startups fail?

According to the U.S. Small Business Adminstration, two thirds of new businesses survive for two years, and less than half make it for four years. And making it doesn't necessarily mean being profitable. Why do businesses fail? The top reasons include management inexperience and insufficient capital. Other reasons inlcude an inadequte business plan, lack of market/domain knowledge, weak management team, and concentration on tactical instead of strategic issues. ITR Ventures works with entrprenuers to mitigate risk, reduce expenses, and help to develop and excute viable/scalable business plans all with the focus of improving their likelihood of success.

Q: What is Seed Capital (Seed)?

Seed Capital can be distinguished from venture capital in that venture capital investments tend to come from institutional investors and tends to involve significantly more money, arm's length transactions, and much greater complexity in the contracts and corporate structure that accompany the investment. Seed funding involves a higher risk than normal venture capital funding since the investor does not see any existing projects to evaluate for funding. Hence, the investments made are usually lower (in the tens of thousands to the hundreds of thousands of dollars range) as compared to normal venture capital investment (in the hundreds of thousands to the millions of dollars range), for similar levels of stake in the company. Seed funding can be raised online using equity crowdfunding platforms such as SeedInvest, Seedrs and Angels Den. Investors make their decision whether to fund a project based on the perceived strength of the idea and the capabilities, skills and history of the founders.

Q: What is Venture Capital (Venture)?

Venture Capital (VC) is financial capital provided to early-stage, high-potential, growth startup companies. The venture capital fund earns money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as biotechnology and IT. The typical venture capital investment occurs after the seed funding round as the first round of institutional capital to fund growth (also referred to as Series A round) in the interest of generating a return through an eventual realization event, such as an IPO or trade sale of the company. Venture capital is a type of private equity.

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