Question:a.
The contribution of venture capitalists to the economic growth of a
country cannot be over-...
Question
a.
The contribution of venture capitalists to the economic growth of a
country cannot be over-...
a.
The contribution of venture capitalists to the economic growth of a
country cannot be over- emphasized. As a young entrepreneur with a
business degree from a top-notch University in Ghana, vividly
discuss the critical issues you will consider in choosing a venture
capitalist to assist you roll out your pizza hut.
Followings would be the
critical issues to be considered while choosing an apt venture
capitalist for a pizza hut start up -
Industry expertise: Before jumping on to any other criteria,
one needs to see whether the VC has industry expertise or not as VC
investment is much more than just monetary investment.
Location of VC firm: This might seem a negligible factor but
it's always good to have someone nearby to assist when needed.
Buyer of an 'idea': VC must be able to connect to your idea
& thoroughly understand the whys of the business.
Network: Network of VC is also significant as it brings more
expertise on the table in case of exceptional situations.
Multi-stage financing capacity: It's alsways advisable to stick
to one VC for all stage financing as the VC would know the business
inside-out before the next round of fund raising.
Pattern (of their past deals): It's crucial to identify the
pattern in VC investing based on their past deals in order to
comprehend their management style, behaviour in critical situation,
exit strategies etc.