Econ 483_Lecture 24_Venture Capital

Venture capital getting serious now venture capital

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Unformatted text preview: capital Getting serious now.... Venture capital Lecture 24: Venture capital, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. Venture capital Venture capital Venture capital: - a type of private …nancial capital (private equity) provided by individuals or institutional investors (often through specialized venture capital …rms) to new, rapidly growing companies in high technology industries - i.e. biotechnology, IT, software etc - an important source of equity for start-up companies. Start-up companies: new companies with limited operating history that are too small to raise capital in the public markets or secure a bank loan (etc) Lecture 24: Venture capital, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. Venture capital Venture capital Venture capitalists (i.e. persons or investment …rms that make venture investments): provide cash in exchange for shares in the invested company may take a role in the management of the company may have technical expertise and assist in the development of new products or services take high risks with the expectation of high rewards have a long-term orientation. Lecture 24: Venture capital, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. Venture capital Venture capital VC Firms grew out of Silicon Valley in the 1950s Largest concentration around R&D Universities Dot-com boom Apple, Google, Yahoo Examples: Kleiner-Perkins, Sevin-Rosen, IDG Ventures (http://www.idg-ven...
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This note was uploaded on 03/16/2014 for the course ECON 483 taught by Professor Staff during the Spring '08 term at University of Illinois, Urbana Champaign.

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