Discovering Computers ©2016 (Shelly Cashman Series) (MindTap Course List)
Discovering Computers ©2016 (Shelly Cashman Series) (MindTap Course List)
1st Edition
ISBN: 9781305391857
Author: Misty E. Vermaat, Susan L. Sebok, Steven M. Freund, Jennifer T. Campbell, Mark Frydenberg
Publisher: Cengage Learning
Question
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Chapter 2, Problem 2IR
Program Plan Intro

Venture Capitalists:

  • Venture capitalists are essential part of the startup ecosystem.
  • When startup reaches the growth stage, their requirement will be reliable investors with ample amount of funding.
  • The problem exist is most of the investors will not trust a newly started company for investing.
  • Many startups find difficulties in finding an investor. Because sometimes the investment provided by investors is inadequate for the company.

Explanation of Solution

Criteria considered by capitalists for making an investment:

Size of the market:

  • The business will target large market for grabbing investor’s attention.
  • For investors, large market means market that could produce $1 billion in revenues.
  • If the market is bigger, more likelihood trade sale makes the business even more attractive to the investors.
  • Here the business can grow fast to the first or second place in the market.

Product with competitive edge:

  • Investors look for a great product that is not produced by other companies before.
  • They do analysis in the growth of business in the market.
  • Investors need to sale the product and the marketing should be done by the company before competitors enters into the market...

Explanation of Solution

Successful venture capitalists and invested companies:

Accel partners:

  • Accel partner was founded in 1983 and located in London, New York, India, China and Palo Alto.
  • They do multi-stage investments in internet technology companies.
  • They are funded in startups like, BabyOye, Myntra, Flipkart, BookMyShow.

Nexus Venture partners:

  • Nexus venture investing in companies in India and US.
  • They will invest between $0.5 million and $10 million in early stage of growth in the startup.
  • They are funded in startups like, Snapdeal, PubMatic, Komli, Housing...

Explanation of Solution

Types of advertisements displayed by start-up companies on social media:

  • The startups use online media for advertisement on their company.
  • The startups use the online media like, Facebook, Twitter, Instagram, Pinterest, Snapchat, LinkedIn...

Explanation of Solution

Way in which advertisements affect the people’s interests:

  • The people use different social media for connectivity.
  • Therefore, advertising these media will attract people widely...

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Chapter 2 Solutions

Discovering Computers ©2016 (Shelly Cashman Series) (MindTap Course List)

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