Venture Capital - Research Article from Encyclopedia of Management

This encyclopedia article consists of approximately 4 pages of information about Venture Capital.
This section contains 912 words
(approx. 4 pages at 300 words per page)
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Venture Capital

Venture capital refers to money that is invested in companies during the early stages of their development. Such funds may come from wealthy individuals, government-backed Small Business Investment Companies (SBICs), or professionally managed venture capital firms. Since investing in an unproven business venture is highly speculative, venture capitalists generally target companies that they believe offer significant potential for growth, and therefore an opportunity to earn a high rate of return in a relatively short period of time. In exchange for providing capital, as well as a source of management assistance and industry contacts for growing firms, the investors usually require a percentage of equity ownership in the company, some measure of control over its strategic direction, and payment of assorted fees. "Private equity provides capital and access to a network that can transform a company into an industry player," Karen E. Klein noted in...

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This section contains 912 words
(approx. 4 pages at 300 words per page)
Buy the Venture Capital Encyclopedia Article
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Venture Capital from Gale. ©2005-2006 Thomson Gale, a part of the Thomson Corporation. All rights reserved.
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