Venture leasing might be the latest buzzword in social circles; but at it's heart is a reinvestment of venture capital. As the venture capital market goes, so goes venture leasing. Startup businesses seeking startup leases should be excited by all the buzz created recently over the IPO of Google.

Venture capital markets are cyclical, just like the rest of the market. In this case, many of the venture capital firms that have invested in businesses prior to the 2000 tech bubble burst are faced with the decision of either finding new investments or returning capital to investors... and losing the possibility for earning fund management fees. It's no suprise then, that venture capital firms are looking for new companies and avenues to invest funds in. Venture leasing offers just such an avenue.

• The genesis for this blog idea came from David Mayer, an attorney with Patton Boggs LLP, who publishes an exemplary monthly business e-newsletter on leasing issues in the legal arena. For a more in-depth look at the return of the venture capital market, check out the March issue.

If you're considering startup or venture leasing, consider Graphic Savings Group.

As intial public offerings return to the forefront of the news, another buzzword being heard is Venture Leasing.

What is Venture Leasing?

Venture Leasing is equipment or business leasing options offered to startup firms pre-IPO by a leasing corporation. Venture leasing is a complementary service to venture capital with both options likely aiding a startup business in its incubation period. Often a lessor will have a security interest in the leased equipment in exchange for the added level of risk. On the flip side, a startup company may receive assistance in the form of equipment deinstallation or valuation from the lessor.

The lease can run anywhere from $100,000 to $5,000,000 depending on the size of the startup and its intended market. When deciding whether to offer a lease to a startup backed by venture capital; a lessor will often use 9 months of available cash as a benchmark. Those startup corporations with more than 9 months of cash will likely be approved, barring any mitigating factors.

If you're a startup that is considering startup leasing options, please consider Graphic Savings Group.