You need to conduct a research on equity capital available for new ventures in y
ID: 2616907 • Letter: Y
Question
You need to conduct a research on equity capital available for new ventures in your home country and prepare the report.
Your report should include:
1) An introduction explaining major sources of equity capital for new ventures, such as
Business Angels (individual investors)
Venture Capital firms
Private Equity firms
and major trends in this field.
2) Describe all main BA, VC and PE firms in your home country (their structure, history, approach, number of deals, total amount of capital raised, etc.) – all factors you may consider appropriate to have a better understanding of their activities.
3) Summarize BA, VC and PE firms in your home country in the following table:
Country
Firm’s Name
Type
Sectors
Website
where:
Country: your home country
Type: BA, VC, PE, Others
Sectors: list all the sectors in which they invest (e.g. high tech, telecom, agriculture, etc.)
Website: Give the link to the website
4) Give your conclusion on the situation with equity capital in your home country and perspectives for the future.
Project Outcome:
You are required to prepare the report based on the results of your research and analysis. The report should contain: tables of contents, introduction, analysis and conclusion. The length of the report should be about 10-15 pages.
Project Assessment:
The student’s work will be assessed by analytical abilities, deepness of research, solid judgments, logic of statements, and understanding of implications of finance and business.
Explanation / Answer
Answer: The equity capital for new ventures are as follows :
1) Business Angels ( Individual Investor )
An angel investor is someone who puts their own finance into the growth of a small business at an early stage potentially contributing their advice and business experience. Angel investors make their own decisions about the investment and they take shares in the business in return for providing personal equity. The amount they invest is flexible it could be a small amount or a larger amount.
2) Venture Capital Firms
According to Prasanna Chandra, Venture Capital can be defined as " Venture Capital represents a financial investment in highly risky proposition made in the hope of earning higher profits"
Venture capitalist usually remains invested for around 3 to 7 years in any business venture. This period can get extended depending upon the market conditions like the economic downturn, the negative impact of inflation etc.
3) Private Equity Firms
Private Equity investing is investing in securities through a negotiated process. Private equity is a medium to long-term financial investments . This investment is a risky capital.
Answer 2 is attached below
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