EBI Publications

The venture capitalist provides the funding knowing that there is a significant risk associated with the company’s future profits and cash flow. Capital is invested in exchange for an equity stake in the business rather than given as a loan, and the investor hopes the investment will yield a better- than-average return. Venture capital is an important source of funding for start-up and other companies that have a limited operating history and don’t have access to capital markets. Venture Capital Venture capital is financing that investors provide to startup companies and small businesses that are believed to have long- term growth potential. For startups without access to capital markets, venture capital is an essential source of money. Risk is typically high for investors, but the downside for the startup is that these venture capitalists usually get a say in company decisions. The venture capitalist provides the funding knowing that there is a significant risk associated Financial Infos Issue ( 26 )

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