Venture Capital

Venture Capital

“As the risk profile of a modern startup is likely different in its seed, early, mezzanine, and later stage, venture capital is only effective way to grow a business.”

How true is this statement?

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Venture Capital Financing

Financing is one of the most important aspects of consideration for modern start-ups, largely because the extent to which they may wish to innovate may require additional funds to the seed capital to grow the business once the product is offered to the market. However, the investors often consider the risks involved and their role in the business varies based on the type of capital investment made. Notably, the venture capital financing often comes from highly interested parties who not only wish to acquire gains on the capital invested in the firm, but also wish to be part of the organization as it helps address the issues that prompted the startup (Drover et al., 2017).

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