Venture_capital_financing

Venture capital financing

Venture capital financing

Type of High-Risk/High-Reward Funding of a High Growth Potential Company


Venture capital financing is a type of funding by venture capital. It is private equity capital that can be provided at various stages or funding rounds. Common funding rounds include early-stage seed funding in high-potential, growth companies (startup companies) and growth funding (also referred to as series A). Funding is provided in the interest of generating a return on investment or ROI through an eventual exit through a share sale to an investment body, another trading company or to the general public via an Initial public offering (IPO).

Venture Capital can be made in four methods:

  1. Equity Financing;
  2. Conditional Loan;
  3. Income Note; and
  4. Participating Debenture.

See also


References

    Further reading

    • Ruhnka, Tyzoon T. Tyebjee, Albert V. Bruno (1984). "A Model of Venture Capitalist Investment Activity". Management science. Volume: 30, Issue: 9 (September 1984), pp. 1051–1066.
    • Frederick D. Lipman (1998). "Financing Your Business with Venture Capital: Strategies to Grow Your Enterprise with Outside Investors". Prima Lifestyles. (November 15, 1998).

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