Sample Business Studies Essays on Right Venture Capital

Venture capital is a form of financing made by investors toward emerging companies that depicts potential growth in the future. Venture capital sometimes takes more than financial angle and may sometimes mean technical knowhow and management of the startup company. The venture capitalist takes up the risk however there is high pay off when the company succeeds. Venture capital is adopted in the case when getting loans and financing from financial institution is hard. There are two things to consider when choosing the right venture capital (Liu & Maula, 2016).

One is choosing the right kind of people to partner with. Right venture capital should look into the credibility of the people involved in the business. Investing in right people is critical in the success in that people involved in running of the business are able to make rapid decision with good background experience of the business as well they are able to share the vision in the growth of the company. Getting powerful thinking people with executive talent as partner is the first step in choosing the right venture capital (Meglio, Destri, & Capasso, 2017).

Second way of evaluating and choosing right venture capital is the kind of business and if the audience are buying. The key focus to business growing is the number of customer you get. Venture capital build value in the company by bringing focus in the management of the company and ensuring there is liquidity of cash flow. There should be great interest in the job for it to pay off at the end (Wadhwa, Phelps, & Kotha, 2016)

In conclusion, determining the right venture capital requires an entrepreneur to take thorough research on the nature of business he is venturing and the person to take up the control. An entrepreneur should take up the risk of losing control of the business.

 

 

REFERNCES

Liu, Y., & Maula, M. (2016). Local partnering in foreign ventures: Uncertainty, experiential

learning, and syndication in cross-border venture capital investments. Academy of Management Journal59(4), 1407-1429.

Meglio, O., Destri, A. M. L., & Capasso, A. (2017). Fostering dynamic growth in new ventures

through venture capital: Conceptualizing venture capital capabilities. Long Range Planning50(4), 518-530.

Wadhwa, A., Phelps, C., & Kotha, S. (2016). Corporate venture capital portfolios and firm

innovation. Journal of Business Venturing31(1), 95-112.