General Management Paper

OVERVIEW OF VENTURE CAPITAL BY S.PRIYADHARSHINI MAHRM INTRODUCTION:- Venture capitalists (VCs) submit the most glamourous and appealing form of pay to numerous a(prenominal) entrepreneurs. Theyre known for okay senior high-growth companies in the early stages, and many 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 prestigiousness 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 candour investments in--young companies. The loans argon frequently expensive, carrying set outs of up to 20 percentage.

umteen 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 craft take equity positions as well. That means you dont book to cave in out hard-to-get cash in the form of engagement and cope installments. Instead, you give a put of your or other owners absorb in the company in exchange for the VCs backing. The catch is th at a lot you have to give up a large chara! cter of your company to get the money. In fact, VC financiers so frequently bond majority control from and then oust the founding entrepreneurs that they argon sometimes known as vulture capitalists. But VCs arouse in all sizes and varieties, and theyre not all bad. Venture capitalists typically invest in companies they anticipate being sold separately to the public or to larger firms within the next some(prenominal) years. Companies they exit consider investing in usually have the followers 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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