Assignment First

  本篇论文代写-风险资本融资讲了风险投资公司寻找他们认为有潜力的初创公司进行投资。本质上,他们寻找那些有潜力的公司,并投资于公司以实现利润最大化(Hellmann和Puri, 2000)。公司投资于公司的理念。在这个过程中,母公司和投资公司获利。在理想的情况下,所有的投资者和利益相关者都能从这个融资过程中获益。本篇论文代写文章由英国第一论文 Assignment First辅导网整理,供大家参考阅读。

  Venture capital funding

  Venture capital firm searches to invest in startup companies that they deem to have potential. They essentially search for companies that gave potential and invest in the company to maximize profits (Hellmann and Puri, 2000). The companies invest in the idea of the firm. In this process the parent firm and the investing firms gains. In an ideal situation all the investors and stakeholders gain by this funding process.

  Advantages of this process are the investing firm cannot claim the fund back from the entrepreneurial firm.

  MTT need not give back the money to VCI. VCI is taking more risk in the financial process of investing.

  In this process, usually MTT can go and ask for money for VCI.

  Due diligence is carried out by the firms. In other forms of investments such as crowdfunding or angel investors they do not have any fiduciary duty of responsibility to the shareholders. In this process the companies should convince the company of the various benefits and the potentials that the company has to succeed (Gompers, and Lerner, 2001.). Owing to this there can be increase in scrutiny and a more transparent process. All the nuances of the deal are known prior to the commencement of the deals.

  Before there is steady stream of income for startup companies they essentially invest in more money and the money flow is negative. In this negative cash flow there is issue of sustenance for the company (Bygrave, and Timmons, 1992). The company that faces negative cash flow will not sustain and eventually fail. This is known as the Death Valley curve of the company. Owing to the money that is pumped in there will be significant flow of capital. The company will manage to survive during key threshold period. This will increase the sustenance of the company for a longer duration.

  The volume of money that is pumped for will be higher when compared to the other forms of funding. Angel investors are private investors who choose to invest in companies. Debt form of investing needs to be returned at periodic intervals. For Boot strapping process the owners of the company pump the amount into cash flow. On a comparative base, the volume of money that is acquired is higher in the process of venture capital funding.

  MTT will have the opportunity to meet with a lot of newer business affiliates and people. The chances of the company to meet with potential clients will be higher.

  In this process MTT can even acquire angel investors to meet for any future demands.