General Management Paper

OVERVIEW OF VENTURE CAPITAL BY S.PRIYADHARSHINI MAHRM INTRODUCTION:- Venture superiorists (VCs) pose the most glamourous and appealing form of support to legion(predicate) entrepreneurs. Theyre known for okay senior high-growth companies in the early stages, and some(prenominal) 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 prestige by their mere presence. Just the circumstance that youve obtained venture capital backing means your business has, in venture capitalists eyes, at least, considerab le potential for rapid and bankable growth. VCs make loans to--and impartiality investments in--young companies. The loans argon frequently expensive, carrying grades of up to 20 percentage.

some(prenominal) 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 call take equity positions as well. That means you dont book to take for granted out hard-to-get cash in the form of engagement and capitulum installments. Instead, you give a put of your or other owners amuse in the company in exchange for the VC s backing. The catch is that oft you have ! to give up a large voice of your company to get the money. In fact, VC financiers so frequently get through majority control from and then oust the founding entrepreneurs that they are sometimes known as vulture capitalists. But VCs elicit in all sizes and varieties, and theyre not all bad. Venture capitalists typically invest in companies they anticipate being sold each(prenominal) to the public or to larger firms within the next some(prenominal) years. Companies they testament consider investing in usually have the by-line 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