General Management Paper

OVERVIEW OF VENTURE CAPITAL BY S.PRIYADHARSHINI MAHRM INTRODUCTION:- Venture working capitalists (VCs) diddle the most glamourous and appealing form of financing to some entrepreneurs. Theyre known for okay senior high-growth companies in the early stages, and umpteen of the best-known entrepreneurial advantage stories owe their growth to financing from venture capitalists. VCs can bring home the bacon large sums of money, advice and prestige by their mere presence. Just the circumstance that youve obtained venture capital backing means your business has, in venture capitalists eyes, at least, considerable potential for rapid and bankable growth. VCs make loans to--and right investments in--young companies. The loans argon frequently expensive, carrying pastures of up to 20 percentage.

many another(prenominal) venture capitalists seek very high rates; a 30 percent to 50 percent annual rate of return. Unlike banks and other lenders, venture capitalists a great lease take equity positions as well. That means you dont book to have out hard-to-get cash in the form of engagement and heading installments. Instead, you give a put of your or other owners post in the company in exchange for the VCs backing. The catch is that much you have to give up a large per! centum of your company to get the money. In fact, VC financiers so frequently seclude majority control from and then oust the founding entrepreneurs that they ar sometimes known as vulture capitalists. But VCs kindle in all sizes and varieties, and theyre not all bad. Venture capitalists typically invest in companies they anticipate being sold from each one to the public or to larger firms within the next some(prenominal) years. Companies they ordain consider investing in usually have the undermentioned features: Rapid, steady sales growth A...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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