Venture capital, Finance Basics

Venture Capital

Venture capital is a form of investment in new small risky enterprises utilized to get them started via specialists called venture capitalists. Venture capitalists are thus investment specialists who such raise pools of capital to fund new ventures that are likely to become public corporations in return for an ownership interest. So they buy part of the stock of the company on a low price in anticipation that whenever the company goes public, they should sell the shares on a higher price and consequently create a considerably high profit.

Venture capitalists also provide managerial skills to the firm.  Examples of venture capitalists are pension money, insurance companies, wealthy individuals Acacia fund, Rock fella or etc. Because the goal of venture capitalists is to create quick profits, they will invest just in firms along with a potential for rapid growth.

Posted Date: 1/29/2013 5:36:54 AM | Location : United States







Related Discussions:- Venture capital, Assignment Help, Ask Question on Venture capital, Get Answer, Expert's Help, Venture capital Discussions

Write discussion on Venture capital
Your posts are moderated
Related Questions
What is the Process of Investing in Securities ? There are several process of investing in securities:- (1) Finding a Broker (2) Selection of Brokers (3) Opening an Account w

Problem 1 a) Explain Trade Liberalisation and give your views whether emerging economies should adopt trade liberalization protectionist measures to attain economic growth.

explain the main sources of finance ?


Foreign Credit Insurance Association (FCIA) An agent of the Export/Import Bank, FCIA gives exporters with insurance coverage beside both commercial and political risk. The main

Credit Standards A firm may follow a stringent or a lenient credit policy. The firm subsequent of a lenient credit policy tends to sell on credit to customers on extremely lib

Determine the Component of Return Rate of return from an investment consists of the two: (i) Yield: Interest or dividend received is called yield. (ii) Capital Appreci

Baumol's Model - Optimal Cash Balance An application of the EOQ is the Baumol's model which is inventory model to cash management. Its statements are as: The firm emplo

Setting a Reorder Point - ROP  Once the order quantity has been determined, the next question to be settled is when to place the order. If an order is released and it takes th

Define the term Public Issues - Floating New Issues Under this method, issuing company directly offers to general public/institutions a fixed number of shares