Essentially, for any new venture, the venture capital investing process is all about minimizing risks and maximizing rewards. This investing process is discussed in this article from the entrance stage to the exit stage.
Venture capitalists play the role as an important financial intermediary
by providing capital to firms that might otherwise experience
difficulties in attracting funds from pre-inception to post operations.
Subject to other things being equal, firms seeking venture capitalist
backing are generally small but typically young and high risk oriented
because of their possessing inadequate. New firms usually have little or
no tangible assets and are characterized by a knowledge gap between
what the entrepreneurs and investors know about each other. A natural
corollary of this, venture capitalists finance in real terms, and seek
high risk oriented projects that have a potential for big rewards. The
mode of finance usually involves the purchase of equity or equity linked
stakes from such privately held firms. In order to minimize the risk
and maximize the rewards, the venture capital industry has developed a variety of mechanisms, which in other words, can be stated as the venture capital investing processes.
To read the full, original article click on this link: How the Venture Capital Investing Process Works
Author: Ksingh
