Venture Capitalist


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Venture Capitalist

An individual or company that provides funding for a start-up. For example, suppose a company with little access to capital is attempting to open a new market or access an old one with a better product. It may not be able to receive loans, either because of an unproven track record or because it is already significantly in debt, and it may have exhausted financing from family and friends. A venture capitalist allows this company to begin and build upon its operations by providing necessary funding. Usually, the venture capitalist takes equity in the company in exchange for the money. Venture capital firms may also provide needed expertise in how to run a business than can help the start-up become successful.
References in periodicals archive ?
That's not exciting enough for a venture capitalist.
The web site reveals complaints of venture capitalists being arrogant, duplicitous, and even possibly stealing ideas.
based venture capital firm that specializes in post-seed investments, says: "If you are pre-revenue and pre-product, you aren't getting funding unless you go to the small handful of seed-stage venture capitalists and angels who will do that sort of deal.
BLACK ENTERPRISE spoke to NAIC members, who shared valuable tips on the best way to approach venture capitalists during lean times.
A venture capitalist might invest $4 million in return for a 40 percent preferred-equity ownership of the company.
Venture capitalists, some of which are supported by major banks, formerly specialised in providing capital for start-up businesses, but now concentrate on management buy-outs and are always on the look-out for companies as investment opportunities.
These results suggest that the venture capitalist provides a valuable service in assisting the entrepreneur in timing the market.
And venture capitalists worry that the government money will distort their high-risk, high-return business by pulling scarce private dollars out of promising start-ups and well-run venture-capital funds and into less-commercial companies and subsidized but less expert venture-capital funds.
Staging capital commitments, making capital expensive and scarce, and structuring incentives are mechanisms to alleviate the inherent agency problem that exists between the venture capitalist and the entrepreneur.
Because venture capitalists demand a high rate of growth from the companies they finance - as much as 10-fold growth in five years - they scrutinize every facet of the operation.
The venture capitalist is rarely serving any more of a social good than is Kohlberg, Kravis when it does a leveraged buyout.
What every venture capitalist needs to know about Guanxi (Relationships) when doing business in China; other cross cultural issues; elements of Chinese negotiations; finding reliable partners and more

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