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venturecapital

venturecapital - Venture Capital and Economic Development...

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Venture Capital and Economic Development
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Venture Capital (VC) funds are funds invested in or available for investment in potentially highly profitable business ventures at considerable risk to the investor. In exchange for their investment in a company, venture capitalists receive an equity stake in the company such as preferred shares and options that give the investor part ownership in the company. Venture capital is considered high risk capital because the investments aren't guaranteed. Equity stakeholders are considered part owners of the company. All other claims must be paid before equity investments can be repaid.
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Stages of Venture Capital Investments Seed financing is an investment made very early in the development cycle of the business. Seed financing provides funds for research and prototype development. Start-ups refer to firms that have completed successful product development and market research but have few, if any, commercial sales.
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