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
Cash and Marketable Securities Management The management of marketable and cash securities is single of the key areas of working capital management. Because cash and marketabl

Types of jobbers in Stock Market There are three kinds of jobbers as: a) Bulls A jobber buys shares while prices are down and hold them in anticipation such t

the two problems below (P1 and P2). Five marks each. Part marks will be allocated, but if you have the incorrect answer then you cannot expect to get more than half marks. Project

Distribution Policies   Most Recent Fiscal Year Fiscal Year (-1) Fiscal Year (-2) Fiscal Year (-3)

Financial analysis: Financial analysis (also defined to as financial statement analysis or accounting analysis or Analysis of finance) defines to an assessment of the viabilit

The following information pertains to Fairways Driving Range, Inc.: The company is considering operating a new driving range facility in Sanford, FL. In order to do so, they will

Example of Replacement of Assets Estate Developers purchased a machine five years ago on a cost of £7,500.  The machine had a probable economic life of 15 years at the moment

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

Working Capital a) Working capital or called gross working capital also, refers as current assets. b) Net working capital refers to current assets minus current liabilities