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Looking At Venture Capital As A Necessary Evil
Venture Capital - A Valuable Source of FinanceMagnify Earnings Using Venture Capital Funds | The Majority Share Holder or an Employee - Which One Will You Be? | 11/04/05
| Venture Capital funds, companies or individuals, are in business to make money. If they can help create a larger more profitable company from the investment of a defined amount of cash or debt, they can magnify earnings on the cash invested through ownership of a large percentage of the companies stock. You need to look at Venture Capital as a necessary evil as they do provide the following:
- Private equity and venture capital provide a valuable source of finance for growing companies.
- Private equity-backed companies stimulate the economy by creating jobs, growing faster than other companies, investing heavily in R&D, and developing internationally.
- The majority of private equity-backed companies are privately owned.
- Three quarters of all Venture Capital investments benefit companies employing less than 100 people.
- Private equity-backed companies are present in all sectors.
- The private equity sector in the US has considerable economic and employment benefits in developing US technological and entrepreneurial potential. Guiding growth-oriented companies from the start-up phase through to the trade sales or stock market flotation and global success is the hallmark of a well managed Venture Capital company.
Private Venture Capital funds should be used very prudently. The timing of bringing the Venture group into your company may be the difference between being the majority share holder or an employee, after your long struggle. |
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