Lily and Bob own a company and have been developing a product that they want to take to market. To do this they need substantial investment that they are unable to raise from their own savings. They are thinking of approaching a venture capita firm and ask you for advice as they know you studied finance. Explain the process of obtaining venture capital. What woulo that mean for their company?
Lily and Bob own a company and have been developing a product that they want to take to market. To do this they need substantial investment that they are unable to raise from their own savings. They are thinking of approaching a venture capita firm and ask you for advice as they know you studied finance. Explain the process of obtaining venture capital. What woulo that mean for their company?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Lily and Bob own a company and have been developing a product that they want to take to market. To do this they need substantial investment that they are unable to raise from their own savings. They are thinking of approaching a venture capita firm and ask you for advice as they know you studied finance. Explain the process of obtaining venture capital. What woulo that mean for their company?
Expert Solution
Step 1 General Introduction
Substantial investments are made by the companies to generate income or appreciation. It involves putting capital to use in terms of money, effort, and so on to expect a greater payoff in the future than the original amount invested.
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