Asked & Answered

What exactly does a venture capital firm do?

If you’re reading this, you probably already know the answer to that question.  However, the short version is as follows: VC firms offer crucial, early-stage financing to companies with high growth potential in exchange for equity.  The idea is to provide the financing a promising company or idea needs to get off the ground (including additional capital as it’s required) and to promote high levels of growth, with the payoff being realized in the increased value of the VC firm’s equity share in the financed company.

i.e. A VC firm invests in your company, takes a percentage, and hopes that you do well enough that that percentage will be worth something down the line.

What makes you different from a bank?

In sum, everything.  Banks loan money at a set rate of interest, which is determined based upon the level of risk associated with the loan in question (largely determined by credit history and the amount of collateral the bank can use to secure the loan).  At a VC firm, we look at a lot of the same things a bank looks at, but we understand the high-risk nature of investing in early-stage (often pre-revenue) companies.  Moreover, where banks give out loans in exchange for the promise of repayment, we invest in exchange for the promise in your vision.  Unlike a bank, which cares only about getting payments in accordance with a set schedule, our purchase of an equity stake in your company means we’re looking for the same thing you are: to see your company succeed.

What makes you different from other VC firms?

In addition to being a green venture capital firm, PMA Venture Capital Group supports its portfolio companies with a comprehensive suite of legal, financial, technological, and operational resources aimed at maximizing your (and, consequently, our) chances for success.  We’ll not only provide you with the financing you’ll need, but will also open doors for you and leverage our relationships to augment the value of every dollar we invest.

Click here to read about the PMA Advantage.

What is green venture capital?

Green venture capital focuses not only on the potential for financial gain in each investment, but also the potential for an idea to have a positive social impact.  Like other green VC firms, PMA Venture Capital Group recognizes that we are all connected, both to each other and to our environment.  Every investment we make begins with a question: “How will this idea help people to live better, be healthier, and experience less anxiety in their day-to-day lives?”

For more information on what makes us a green VC firm and what guides our investment decisions, please learn more about our vision here.

Is there any literature you think I should brush up on?

We’ve found the following the articles on venture capital to be highly informative.  Please read them at your leisure:

Where do I submit my business plan?

If you’ve covered all of the bases and you’re ready to submit a proposal, please do so here.

Will you sign an NDA before I submit my business plan?

We generally do not sign NDA’s.  For more-detailed information as to why, please review the following links:

I have a question you didn't answer here. How can I get in touch with you?

If you have an additional question or other general inquiry, please fill out this form and we’ll get back to you as soon as we’re able.