In South Puerto Rico (Ponce area), as in the rest in the Puerto Rico, risk capital funds can help your business take off. Risk capital funds are characterized by the high risk that they present. If you and a group of friends join together and invest money in a new company that has a potential for rapid growth then you’re investing in risk capital funds. These are pivotal for companies because they help them grow in the market.
 
Don't worry if the concept of risk capital funds sounds new. According to Economic Development Bank of Puerto Rico President Annette Montovo, many people are unaware of how risk capital funds actually work.  Case and point: The bank has $30 million destined for the funding of innovative and novel ideas, yet only two out of 25 proposals has been funded between November 2006 and November 2007.  Why? Because people need to know the key elements of a successful proposal.

To help you improve your shot at getting risk capital funds with the EDBPR, here's are seven tips that will give your proposal a fighting chance.

   1) Include a business plan

Just like you wouldn't embark on a journey without a road map, you shouldn't start a business without a business plan. Your plan should be as complete as possible. Include it with your funding proposal.

   2) Don't pitch a simple idea

Your proposal has to have specific concepts like patents or prototypes. Even a working business will be a mark in your favor.

   3) Pitch a winner with big-buck appeal

In a convincing and credible way, the proposal must show that the enterprise has the capacity for growth and that it can generate high profits.

   4) The business must be organized as a corporation

This is not the place for a DBA (Doing Business As).  Your personal life and your business life must be completely and financially separate. Incorporating is the way to go.

   5) Invest your own capital

There is no free lunch.  Your own capital has to be at risk, too, or the EDBPR won't take your proposal seriously.

   6) Go fulltime

If you want risk capital funds, the bank wants to see that you have dedicated yourself entirely to the proposed business.  It's time to quit your day job.

   7) Have some experience

The management team must have previous experience on the proposed field, as well as in the field of business in general.

It’s worth mentioning that one of the companies funded with the EDBPR's risk capital fund was Genomas, Inc., which landed $1 million from the Economic Development Bank, and it also attracted capital from other financial sources.

Just like Genomas, Inc., you've go to know the right tools and benefits offered at different local agencies in order to benefit.

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Links to Doing Business in South Puerto Rico and Ponce Area 

• Brief History of Business in Puerto Rico
• Why Do Business in South Puerto Rico and Ponce Area
• Incentives for Doing Business in South Puerto Rico
• Two Keys for Attracting Puerto Rico Business Investors
  
• Port of the Americas' Global Trade Connection for South Puerto Rico