To think critically about: The considerations when choosing between venture capitalists. Introduction: Start-up companies are financed by a market that funds new, often high-risk ventures and this market is termed as the venture capital market. The capital that is provided to the firm is the venture capital. An investor who either gives capital to the start-up or supports the expansion of the company is a venture capitalist .

Question

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Answer 1

Question

Chapter 15, Problem 15.1C

Summary Introduction

To think critically about: The considerations when choosing between venture capitalists.

Introduction:

Start-up companies are financed by a market that funds new, often high-risk ventures and this market is termed as the venture capital market. The capital that is provided to the firm is the venture capital. An investor who either gives capital to the start-up or supports the expansion of the company is a venture capitalist.

Expert Solution & Answer

Explanation of Solution

The various considerations in selecting the venture capitalist that are significant are as follows:

The financial strength of the venture capitalist.
The style of the venture capitalist.
The references of the venture capitalist.
The strategy for exit by the venture capitalist.
The contacts of the venture capitalist.

Conclusion

Venture capitals are mainly beneficial to start-up companies. A huge payoff for the success of start-up companies is mainly possible from two cases: when the company goes public or when the company is sold to another company.

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Students have asked these similar questions

Congratulations! Your portfolio returned 16.7% last year, 2.5% better than the market return of 14.2%. Your portfolio had a standard deviation of earnings equal to 18%, and the risk-free rate is equal to 4.4%. Calculate Sharpe's measure for your portfolio. If the market's Sharpe's measure is 0.29, did you do better or worse than the market from a risk/return perspective? The Sharpe's measure of your portfolio is (Round to two decimal places.)

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Answer 2

Question

Chapter 15, Problem 15.1C

Summary Introduction

To think critically about: The considerations when choosing between venture capitalists.

Introduction:

Start-up companies are financed by a market that funds new, often high-risk ventures and this market is termed as the venture capital market. The capital that is provided to the firm is the venture capital. An investor who either gives capital to the start-up or supports the expansion of the company is a venture capitalist.

Expert Solution & Answer

Explanation of Solution

The various considerations in selecting the venture capitalist that are significant are as follows:

The financial strength of the venture capitalist.
The style of the venture capitalist.
The references of the venture capitalist.
The strategy for exit by the venture capitalist.
The contacts of the venture capitalist.

Conclusion

Venture capitals are mainly beneficial to start-up companies. A huge payoff for the success of start-up companies is mainly possible from two cases: when the company goes public or when the company is sold to another company.

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Answer 3

Question

Chapter 15, Problem 15.1C

Summary Introduction

To think critically about: The considerations when choosing between venture capitalists.

Introduction:

Start-up companies are financed by a market that funds new, often high-risk ventures and this market is termed as the venture capital market. The capital that is provided to the firm is the venture capital. An investor who either gives capital to the start-up or supports the expansion of the company is a venture capitalist.

Expert Solution & Answer

Explanation of Solution

The various considerations in selecting the venture capitalist that are significant are as follows:

The financial strength of the venture capitalist.
The style of the venture capitalist.
The references of the venture capitalist.
The strategy for exit by the venture capitalist.
The contacts of the venture capitalist.

Conclusion

Venture capitals are mainly beneficial to start-up companies. A huge payoff for the success of start-up companies is mainly possible from two cases: when the company goes public or when the company is sold to another company.

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Answer 4

Question

Chapter 15, Problem 15.1C

Summary Introduction

To think critically about: The considerations when choosing between venture capitalists.

Introduction:

Start-up companies are financed by a market that funds new, often high-risk ventures and this market is termed as the venture capital market. The capital that is provided to the firm is the venture capital. An investor who either gives capital to the start-up or supports the expansion of the company is a venture capitalist.

Expert Solution & Answer

Explanation of Solution

The various considerations in selecting the venture capitalist that are significant are as follows:

The financial strength of the venture capitalist.
The style of the venture capitalist.
The references of the venture capitalist.
The strategy for exit by the venture capitalist.
The contacts of the venture capitalist.

Conclusion

Venture capitals are mainly beneficial to start-up companies. A huge payoff for the success of start-up companies is mainly possible from two cases: when the company goes public or when the company is sold to another company.

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Answer 5

Chapter 15, Problem 15.1C

Summary Introduction

To think critically about: The considerations when choosing between venture capitalists.

Introduction:

Start-up companies are financed by a market that funds new, often high-risk ventures and this market is termed as the venture capital market. The capital that is provided to the firm is the venture capital. An investor who either gives capital to the start-up or supports the expansion of the company is a venture capitalist.

Expert Solution & Answer

Explanation of Solution

The various considerations in selecting the venture capitalist that are significant are as follows:

The financial strength of the venture capitalist.
The style of the venture capitalist.
The references of the venture capitalist.
The strategy for exit by the venture capitalist.
The contacts of the venture capitalist.

Conclusion

Venture capitals are mainly beneficial to start-up companies. A huge payoff for the success of start-up companies is mainly possible from two cases: when the company goes public or when the company is sold to another company.

Answer 6

Chapter 15, Problem 15.1C

Summary Introduction

To think critically about: The considerations when choosing between venture capitalists.

Introduction:

Start-up companies are financed by a market that funds new, often high-risk ventures and this market is termed as the venture capital market. The capital that is provided to the firm is the venture capital. An investor who either gives capital to the start-up or supports the expansion of the company is a venture capitalist.

Expert Solution & Answer

Explanation of Solution

The various considerations in selecting the venture capitalist that are significant are as follows:

The financial strength of the venture capitalist.
The style of the venture capitalist.
The references of the venture capitalist.
The strategy for exit by the venture capitalist.
The contacts of the venture capitalist.

Conclusion

Venture capitals are mainly beneficial to start-up companies. A huge payoff for the success of start-up companies is mainly possible from two cases: when the company goes public or when the company is sold to another company.

Answer 7

Chapter 15, Problem 15.1C

Summary Introduction

To think critically about: The considerations when choosing between venture capitalists.

Introduction:

Start-up companies are financed by a market that funds new, often high-risk ventures and this market is termed as the venture capital market. The capital that is provided to the firm is the venture capital. An investor who either gives capital to the start-up or supports the expansion of the company is a venture capitalist.

Answer 8

Expert Solution & Answer

Explanation of Solution

The various considerations in selecting the venture capitalist that are significant are as follows:

The financial strength of the venture capitalist.
The style of the venture capitalist.
The references of the venture capitalist.
The strategy for exit by the venture capitalist.
The contacts of the venture capitalist.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Conclusion

Venture capitals are mainly beneficial to start-up companies. A huge payoff for the success of start-up companies is mainly possible from two cases: when the company goes public or when the company is sold to another company.

Answer 12

Ch. 15.1 - What is venture capital?Ch. 15.1 - Prob. 15.1BCQ Ch. 15.2 - Prob. 15.2ACQ Ch. 15.2 - Prob. 15.2BCQ Ch. 15.3 - Prob. 15.3ACQ Ch. 15.3 - Prob. 15.3BCQ Ch. 15.4 - Prob. 15.4ACQ Ch. 15.4 - Prob. 15.4BCQ Ch. 15.5 - Prob. 15.5ACQ Ch. 15.5 - Prob. 15.5BCQ

Explanation of Solution

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Chapter 15 Solutions