Question

Describe the venture capital process? Why would a company choose venture capital over other types of...

Describe the venture capital process? Why would a company choose venture capital over other types of financing?

Homework Answers

Answer #1

Venture capital process

Firstly for investing in a project venture capital firm looks for

1.good product

2.is there any market for product

3.is proper skills are there for managers to handle the product

4.how much expected returns on investment can be taken from that investment

After screening and evaluating the above and after various discussions funds will be released...

The other sources of capital expects returns from the project from the early stages and startup may not be able to generate returns in early stages....

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