Sources of funds - finance, Finance Basics

Sources of Funds - Finance

Venture capital, with combining risk financing along with marketing assistance and management, could become an effective instrument in fostering developing countries.  The experiences of improved countries and the detailed case learning of venture capital although, indicate such the following elements are utilized for the success of venture capital in any country.

  • A broad-based or/and less family based entrepreneurial traditional societies and government encouragement such for enterprise, creativity and innovations.
  • A less regulated and controlled business and economic environment where an attractive customer chance exists or could be created from high-tech and quality products.
  • Existence of disinvestments mechanisms, particularly over-the counter stock exchange catering for the requirement of venture capitalists.
  • Fiscal incentives that render the equity investment more develops and attractive 'equity cult' in investors.
  • A more common, business and entrepreneurship learned about education system whereas engineers and scientists have knowledge of accounting, finance and accountants and economics understand physical sciences or engineering sciences.
  • An effective training programme and management education for developing professionally competent and committed venture capital managers; that they must be trained to manage and evaluate high technology, high danger ventures.
  • A vigorous development strategy, promotional efforts and marketing thrust employing new concepts such as venture fair clubs, venture networks, business incubators so on.. for the growth of venture capital.
  • Linkage between technology/universities institutions, industry, R & D. Organisations and financial institutions include as venture capital firms.
  • Encouragement and funding or R & D via private public sector companies and the government for certain technological competitiveness.

 

Disadvantages of Venture Capital

  • Dilute control of a firm
  • Dilute ownership position of a firm
Posted Date: 1/30/2013 12:25:45 AM | Location : United States







Related Discussions:- Sources of funds - finance, Assignment Help, Ask Question on Sources of funds - finance, Get Answer, Expert's Help, Sources of funds - finance Discussions

Write discussion on Sources of funds - finance
Your posts are moderated
Related Questions
What are the types of financial assets? Types of Financial Assets: a. Loans b. Bank Deposits c. Stocks A share of ownership within a company d. Bonds A promis

The Genesis operations management team, nearing completion of its agreement with Sensible Essentials, was asked by senior management to present a capital plan for the operating exp

The price of bread is $0.50 per pound, and the price of butter is $0.25 per ounce. Channing spends all of her income, buying 12 pounds of bread, 7 ounces of butter, and nothing els

1.) Assume a $1000 face value bond has a coupon rate of 8.5 percent, pays interest semi-annually, and has an eight-year life. If investors are willing to accept a 10.25 percent rat

Investment  Attributes/  Factors  Influencing  Selection  of  Investment In  choosing specific  investments,  investors  would require definite  ideas  regarding  features

Solve the following Linear Programming Problem using Simple method. Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1 - X2 = 2 X1, X2 = 0

what are the difference between receipt and payment account and income and expenditure account ?

A+/A1 It is one of the top ratings that a ratings agency allots to an issuer or insurer. This rating indicates that the security or carrier has steady financial backing and ple

Example of Accounting Rate of Return Method                                    Shs. Project X cost              500,000 Scrap value                 100,000 Stream of

Maghrabi Enclosure follows a moderate current asset investment policy, but it is considering whether to shift to a different strategy.  The firm's annual sales are $500,000; its fi