Investors financing traditional businesses

For some entrepreneurs, they have great ideas for setting up new businesses in non-tech areas, such as retail, business services, or franchise opportunities. There are many venture capital firms or private equity firms that are specialized in these non-tech sectors.

In many cases, some venture capital firms prefer to invest in non-tech businesses because they are easier to understand; and also have consumers and customers ready to try these businesses. For private equity firms, many are looking to acquire existing family businesses (family succession) and expand them to the next phase through growth or mergers and acquisitions.

What kind of these companies have invested in “traditional business sectors”?

1. Retail Sector – This has been one of the largest sectors invested by venture capital firms, they have invested in young designers, invested in new retail concepts or provided capital for marketing or manufacturing facilities.

2. Franchising: We also noticed that this sector has attracted a lot of capital from venture capital firms, both food-related franchises and other things. Franchising is a good model for expanding the business quickly without substantial capital expenditure.

3. Manufacturing – There are several companies that specialize in providing financing for manufacturing facilities in the United States, this includes financing for special situations, such as expansion or mergers and acquisitions. Manufacturing is one of the most active sectors that companies invest in, as it is often associated with expansion capital or buyout capital, which are preferred by many private equity funds.

4. Professional Services – Another popular area that venture capital firms invest in, these include law firms, accounting firms, medical clinics, or other services like pet care or funeral homes. These are scalable, low-capital-intensive businesses that are attractive to investors.

5. Companies with international marketing opportunities: Recently, some VC firms have invested in several agricultural companies in the US, Australia and Canada as an example, as their products can be exported to emerging markets.

In many cases, investors are very interested in succession (passed between family members) business opportunities, and these opportunities are often related to non-tech industries. Many traditional companies have established a customer base and brand, many also have strong market dominance in their home market, which also means a higher barrier to entry for competitors in their home market or industry.

So if you are setting up a business or need capital for your non-tech related businesses, consider venture capital or private equity firms as possible sources of funding, and these include international investors.