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    Venture capital текст

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    Venture capital is financing provided to startup companies and small businesses for long-term growth potential. It comes from wealthy investors and financial institutions. Venture capital takes monetary form or technical/managerial expertise. It is allocated to companies with exceptional growth potential or rapid growth poised to continue expanding. Though risky, potential above-average returns attract investors to provide funding especially for new companies lacking other capital sources. Investors usually get company equity and influence over decisions.

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    Venture capital текст

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    Venture capital is financing provided to startup companies and small businesses for long-term growth potential. It comes from wealthy investors and financial institutions. Venture capital takes monetary form or technical/managerial expertise. It is allocated to companies with exceptional growth potential or rapid growth poised to continue expanding. Though risky, potential above-average returns attract investors to provide funding especially for new companies lacking other capital sources. Investors usually get company equity and influence over decisions.

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    Venture capital is financing provided to startup companies and small businesses for long-term growth potential. It comes from wealthy investors and financial institutions. Venture capital takes monetary form or technical/managerial expertise. It is allocated to companies with exceptional growth potential or rapid growth poised to continue expanding. Though risky, potential above-average returns attract investors to provide funding especially for new companies lacking other capital sources. Investors usually get company equity and influence over decisions.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    35 views3 pages

    Venture capital текст

    Uploaded by

    Анполп Пнщаа
    Venture capital is financing provided to startup companies and small businesses for long-term growth potential. It comes from wealthy investors and financial institutions. Venture capital takes monetary form or technical/managerial expertise. It is allocated to companies with exceptional growth potential or rapid growth poised to continue expanding. Though risky, potential above-average returns attract investors to provide funding especially for new companies lacking other capital sources. Investors usually get company equity and influence over decisions.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 3

    2 слайд

    What Is Venture Capital?


    • Venture capital (VC) is a form of private equity and a type of financing that
    investors provide to startup companies and small businesses that are
    believed to have long-term growth potential. Venture capital generally
    comes from well-off investors, investment banks, and any other financial
    institutions. However, it does not always take a monetary form; it can also
    be provided in the form of technical or managerial expertise. Venture
    capital is typically allocated to small companies with exceptional growth
    potential, or to companies that have grown quickly and appear poised to
    continue to expand.
    • Though it can be risky for investors who put up funds, the potential for
    above-average returns is an attractive payoff. For new companies or
    ventures that have a limited operating history (under two years), venture
    capital is increasingly becoming a popular—even essential—source for
    raising money, especially if they lack access to capital markets, bank loans,
    or other debt instruments. The main downside is that the investors usually
    get equity in the company, and, thus, a say in company decisions.

    3 слайд
    History of Venture Capital
    • Venture capital is a subset of private equity (PE). While the roots of PE can
    be traced back to the 19th century, venture capital only developed as an
    industry after the Second World War.
    • Harvard Business School professor Georges Doriot is generally considered
    the "Father of Venture Capital." He started the American Research and
    Development Corporation (ARD) in 1946 and raised a $3.5 million fund to
    invest in companies that commercialized technologies developed during
    WWII. ARDC's first investment was in a company that had ambitions to use
    x-ray technology for cancer treatment. The $200,000 that Doriot invested
    turned into $1.8 million when the company went public in 1955.

    4 слайд
    What is a venture capitalist?
    • Investors working at a venture capital firm are called venture capitalists.
    They actively seek out investment opportunities for the firm as well as help
    raise capital for venture funds. In 2017, there were 4,589 active VC
    investors. To put that into perspective—since 2007, the number of
    investors in the industry has increased 163 percent.
    • Using the example in the previous section, BioGeneration Ventures' Edward
    van Wezel is a venture capitalist. 

    5 слайд
    The difference between Angel Investors and Venture Capitalists.
    The main difference between Angel Investors and Venture Capitalists is that the
    first ones are individuals who invests their own money in companies, while
    Venture Capitalists invest the money of others hoping to get a handsome return.

    6 слайд
    How do venture capital firms make money?
    Venture capital firms make money by collecting management and performance
    fees. These can vary from fund to fund, but the typical fee structure follows the 2-
    and-20 rule:
    Management fees
    Calculated as a percentage of assets under management (AUM), typically around
    2%. These fees are intended to cover daily expenses and overhead, and are
    incurred regularly.
    Performance fees
    Calculated as a percentage of the profits from investing, typically around 20%.
    These fees are intended to incentivize greater returns and are paid out to
    employees to reward their success.

    7 слайд
    What’s the difference between venture capital and private equity?
    Both venture capital and private equity share the same goal: to increase the value
    of the business they invest in and then sell their equity stake (aka ownership) for
    a profit. However, they differ in four distinct ways:
    •  The types of companies they invest in
    • The levels of capital they invest
    • The amount of equity they obtain
    • When they get involved in a company’s lifecycle

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