For a lot of entrepreneurs, they have excellent suggestions to setup online companies from the non-technology areas, including retail, commercial services or franchising opportunities. There are many venture capital firms or private equity firms that are committed to these non-technology sectors.
On many occasions, some growth capital firms would rather invest in non-technology businesses as is also simpler to understand; and possess consumers and customers ready to experiment with these lenders. Kind of equity firms, many are thinking of buying existing family business (family succession) and expand them into next phase through growth or mergers & acquisition.
What sort of these firms have committed to "traditional business sectors"?
1. Retail sector - it has been among the largest sector invested by growth capital firms, they have got dedicated to young designers, they've committed to new retail concepts or providing capital for marketing or manufacturing facility.
2. Franchising - we notice this sector has attracted a great deal of capital from venture capital firms - both food and non-food related franchises. Franchising is a great model to grow business quickly without substantial capital expenditure.
3. Manufacturing - there are many of firms are experts in providing financing for manufacturing facilities in the United States, for example special situation financing such as expansion or mergers & acquisition. Manufacturing is probably the most active sectors invested by businesses, simply because this often concerns expansion capital or acquisition capital, which are desirable to many private equity funds.
4. Professional Services - another popular area invested by venture capital firms, these include legal firms, accounting firms, medical clinics and other services like pet care or funeral homes. They are low-capital intensive and scalable businesses, that are attractive from investors.
5. Businesses with International Marketing opportunities - recently, some capital raising firms have committed to several agricultural companies in US, Australia and Canada as examples, for their products could be exported into emerging markets.
In many cases, investors are incredibly enthusiastic about succession business opportunities (transferred relating to the loved ones), which opportunities are often linked to non-technology industries. Many traditional businesses have established subscriber base and branding, many have strong market dominance of their market, this too means higher barrier of entry for competitors of their home market or industry.
So if you're generating a business or require capital for your non-technology related businesses, do consider capital raising or private equity firms as potential funding sources, including international investors.
