Saturday, October 23, 2010

Venture Capital Financing


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financing of venture capital or financing is a good option for companies that have a set annual corporate culture only, 30 percent, which could earn high return on investment or, at least on investment that would have done. These companies usually require huge outlays of capital.

The venture capitalists usually get a share of ownership, so that would be able to work with business risk and profits of the company. So, could become one ofCompany's institutional shareholders. In return, society would be in a location from the operational and financial support by the management team of venture capitalists would benefit expected.

A decisive contribution to society would have sufficient capital to achieve rapid market share to gain. The additional funds raised by venture capitalists could provide the company with sufficient working capital to have the abilitymarket, brand, then sell the company's products.

Through a venture capitalist or an institutional shareholder in your company, you would be able to give your customer confidence.

Moreover, again by a venture capitalist on board would mean that corporate governance is a part of the company's policy from the beginning. However, a downside of venture capital financing would be that a company could venture capitalists feel that lack of strict controlAlliances like the one company that can change the direction of the business to request, without approval.

A company or institution must be seen as prompted venture capitalists who invest in the company's growth, so that a value in itself, since it business contacts in strategic consulting, marketing and referrals network.

Recommend : Proposition 8

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