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Do Venture Capitalists fund service based companies?

I see there is a growing market of software development outsourcing in Pakistan. I am looking forward for venture capitalists to fund my outsourcing company. Is this possible?

Answer 11379

I don’t know that I agree with @Denis on his reply that venture capitalists wouldn’t fund your business because it doesn’t scale.

The simple fact is, any business could potentially be funded by a venture capitalist who sees the value or potential to your business. I don’t know enough of what you’re doing to say one way or the other. But if you look at the history of technology companies, you see many that received millions (some even billions) of dollars when hardly anyone could understand their usefulness or revenue models.

Venture capitalists are risk-takers, which is why they demand such large stakes in the companies they fund. So there’s nothing saying you can’t get someone to fund you, it’s just going to take serious time, effort, and patience on your part to find the one guy who will say “yes”.

ANYthing is possible, so keep on trying. The answer’s no if you DON’T try, right?

Answer 12129

They might if you had a unique service or unique way to perform the service.

They typically want something proprietary so it can be protected. Service rarely has something proprietary.


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