The fifth dimension of a vc broker is the representation of a realistic bridge between an entrepreneur and the investor. It is the best model approach that a seasoned venture broker applies in building connection between an entrepreneur and the investor. The fifth dimension brings all factors together at the right time and in the right space. https://en.m.wikipedia.org/wiki/Five-dimensional_space
What is the fifth dimension of a vc broker?
All things considered, a start-up company has a great idea for a product or service and investors have the money to invest. Instead, the two parties are faced with external challenges that makes it difficult for both parties to discover each other. Firstly, both parties are under represented on the public scene. The numerous websites that promises connection are over crowded. The voices of founders are suppressed because of lack of exposure. Both parties have no idea on where and how to find one another. At this point, this is where a seasoned venture capital broker like Christopher Clark applies the fifth dimension of a vc broker. The fifth dimension of a vc broker offer a roadmap that ensures the entrepreneur closes the funding request on time and knowing the requirements needed to advice on the variety of financial, business, and communication skills to meet and connect these two parties.
How does it help?
Christopher Clark https://christopheclark.com/ apply the fifth dimension representation model. This is because it is suitable for individual and personalized project funding requests. To be able to understand the complex structure of business partnerships, the fifth dimension of a vc broker is required. It will help to pinpoint the exact needs of the start-up company and the expectations of the investors. The fifth dimension of a vc broker will leverage a strong communication skills to put it all into terms each party understands. Formerly, Christopher Clark leverages the fifth dimension of a vc broker in making solid connections in both the investing and entrepreneurship worlds and to constantly find new deals.
In this article, I’m going to use dimension theory as an illustration to describe the various phases of challenges affecting entrepreneurs seeking to raise funds. And also explain the model approach suitable to solve the problem. And how the role of a seasoned venture capital broker is important for the founder. The best model approach in solving the immediate problems faced by business owners or project owners. Let’s dig in gradually, and get ready to enjoy the topic.
Why is the fifth dimensional model of a vc broker important?
The fifth dimension of a vc broker usually result to immediate success for the entrepreneur and the investor. In other words, a seasoned venture capital broker takes a fundraising request out from the three dimensional world we live in. And then place it on a one more space above the fourth dimensional space. The one more space above the fourth dimension represents the vision of the business owner. It is used as the focus key point to ensure that the investors are interested in the same vision and mission of the company. Evidently, the fifth dimension of a vc brokers helps to align the vision of the founder in connecting to the right fit investor for funding.
With the fifth dimension of a vc broker, both parties are successfully connected together at the right time to create profit. The entrepreneur that is seeking capital to start or expand a business and the venture capitalist investing for a high rate of return on the investment. Sometimes, investors use a combination to finance the project for company shares and a return on investment. However, connecting founders to the right fit investors that will fund their startups and small businesses has so many benefits. It removes stress and distractions. Founders and business owners are more focused on the day to day operations of the company.
https://www.entrepreneur.com/businessideas/venture-capital-broker
The fifth dimension of a vc broker is effective in helping businesses grow. The end result is helping a client get the funding they need to run their business at the perfect time. When you look at the global venture capital investment market, it’s expected to reach $585B by 2027. This industry is growing fast and opening doors for promising young entrepreneurs.
Using two dimensional representation in fund raising.
The two dimensional model approach is suitable for charity’s choice of fundraising method. Under two dimensions of asymmetric information, consumers still choose it based on the quality and purpose. This is due to the small requested amount of mindless donations, which disincentivizes serious thinking by consumers. A typical example is crowdfunding sites. In some instances the mindless method goes along with purpose uncertainty. Charitable giving of course has the potential to alleviate the free-riding problem . It is a major characteristic of public good provision and is, therefore, welfare improving.
Disadvantages of using two dimensional representation in fund raising.
Human beings usually go left or right, forward or backward, up or down. Everything around us has three dimensions, height, length, and width. But our world is often represented in two dimensions or flat planes in the pages of books, on the posters in our bedrooms, on our television screens, even on our computer monitors.
There is a drawback behind seeking for your fundraising request from a two dimensional representation. It can become boring to investors if not done well. And can be limited in terms of realism and depth. This will affect the business owner, founder or entrepreneur seeking to raise funds. You find yourself in a position where you have the right skills, a vibrant team, a solid business case and a real problem that your business or company is trying to solve. The founder has all the necessary tools, requirements and business plans ready. But lacks one thing which is the right fit venture capitalist to support the project.
Visualizing this problem and trying to tackle the challenge from a two dimensional model brings exhaustion to you and your team. It takes away a sufficient amount of time and energy. Distracting your attention and focus over a long period of time has so many disadvantages.
The three dimensional model in seeking for funds.
The three dimensional model in seeking for funds helps to connect the founder or business owner to investors. But it does not guarantee getting the right fit investors for you. It only helps to connect the bridge but does not have the features to understand the long term vision of the founder or business owner. The three dimensional model in seeking for funds has a disadvantage that affects the business owner, founder or entrepreneur’s vision and mission statement. It is incapable of offering the best solution of finding the right fit financiers. Ivestors that are ready to support the mission and vision of the founders.
Working with a venture capitalist that is not aligned to the company’s goal for the long term is a pain in the ass. You will witness disagreement and so much effort to work with them. It will stimulate undesired distortion during the working relationship e.g., due to humans’ natural intuition to interpret and with perspective projections in mind.
This is why it is important to construct a representative mental impression of the right fit investors for your project funding. In as much as the venture capital investment is important, our relationship and well-being is a decisive factor that should not be neglected. It is advisable to go into a relationship that is not mutually beneficial and drains your energy up. Making you not feel well.
The fourth dimensional model
The 4th dimension is the time dimension that helps us define a business case seems to be the important factor that every business or company lives with. What do I mean by this? We live in a universe with 3 spatial dimensions. Which means we can locate a point in our 3-D space using just 3 coordinate axes perpendicular to each other.
Let’s say i want to raise funds for my projects and I have a time frame on when to raise the fund. For this round of funding, the project development will achieve a particular set of milestones and development phase in the journey. And the time it will take to complete that phase of development. The time is a very factor that will allow the entrepreneur to achieve a particular set of milestones for their company. The completion of the company development phase will have to match the time coordinates.
Time as a factor in the fifth dimension of a vc broker
The difference between the company development phase and the time dimension is that I can control the phase of development whichever and however way I can but not time. I have to wait for the exact time coordinate to come to me… I cannot go to that particular time. The reason for waiting is because you do not have the connections of the right fit investors/venture capitalists to support the fundraising request.
This is where it becomes a challenge. Getting the right fit investors or financiers for your project at the right time as much as when needed has proven to be a difficult problem to solve. Therefore your funding request can be represented using a (3+1) coordinate system (x, y, z, t).
The fifth dimension in Venture Brokering Service
The fifth dimension of a vc broker is needed because the vc broker works ahead of time to ensure that both parties representation are brought together at the right time. This includes all the right factors together at the right time. It is a realistic bridge for the right founders and the right fit investors to connect at the exact time of need. It is the bridge that venture capital brokers offer to founders and investors alike. The fifth dimension of a vc broker is the realistic bridge that meet the expectation of both parties.
There are an estimated 567 million companies worldwide. This is a marginal growth from 2021 when there were 414.21 million. There are about 582 million entrepreneurs on the earth. Entrepreneurship is on the rise around the world. And there is an upward trend from data showing that the pandemic has triggered a surge in business start-ups across major economies.
The rise of entrepreneurship
The USA has received a 95% increase in new business applications in 2020. France experienced a 20% bump in startup applications. And Japan registered 14% more businesses than the same month in 2019. Small and Medium Enterprises are the backbone of the world economy. In fact, 90% of world businesses are SMEs and they provide 50% of jobs worldwide. This is why it is very important to have the perfect match between entrepreneurs and investors to enable the world to run smoothly.
The number of home-based startups and small businesses is rising. This trend has been growing since the Covid-19 world pandemic breakout. And so is the major problems that these entrepreneurs are trying to solve. And it has to be solved as urgently as possible. This is why a venture capital broker work on behalf of both parties, to ensure that there is a perfect bridge at the right time for the right parties.
