General Management Paper

OVERVIEW OF VENTURE CAPITAL BY S.PRIYADHARSHINI MAHRM INTRODUCTION:- Venture chapiterists (VCs) dally the most glamourous and appealing form of finance to galore(postnominal) 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 right investments in--young companies. The loans argon frequently expensive, carrying regularizes 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 come take equity positions as well. That means you dont book to comport out hard-to-get cash in the form of engagement and school principal installments. Instead, you give a put of your or other owners pertain in the company in exchange for the VCs backing. Th e catch is that a great deal you have to gi! ve up a large passel of your company to get the money. In fact, VC financiers so frequently beguile majority control from and then oust the founding entrepreneurs that they argon sometimes known as vulture capitalists. But VCs interpret in all sizes and varieties, and theyre not all bad. Venture capitalists typically invest in companies they anticipate being sold severally to the public or to larger firms within the next some(prenominal) years. Companies they get out consider investing in usually have the interest features: Rapid, steady sales growth A...If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper