Why does a company use venture capital to bring it to the market Dissertation

Why does a company use contingency hood to bring it to the market - Dissertation ExampleVenture capitalists atomic number 18 those who plunge at the saving of companies when they need it the most and hence bail them out of an impending crisis owing to a financial crunch. These surmisal capitalists are virtually risk lovers who offer their resources to companies with a high growth potential but which are involved in innovative practices not considered secure according to conventional thoughts. They invest merely to show their luck and speculative powers. However, recently this trend has taken a U-turn with most of the venture capitalists opting for companies with an already completed brand name backing them and searching for investors for new product development or market elaboration in different regions. But, the function of venture capitalists is still largely recognised as one that helps preserve a new entrant to the market and distinguish its position. The present paper at tempts to illustrate the fact through with(predicate) the experiences of senior managers employed at a Chinese company. 1.1 Background Venture capital has emerged as an intermediary, with a significant clout in the financial markets, facilitating access of capital to the firms facing difficulty in elevator funds. These firms, mainly in their nascent stage, are beset by high uncertainty levels, possess special(a) tangible assets and these firms function in a highly dynamic markets. Venture capital is often touted as one that fuelled innovation in American economy and as an industry that fuelled the rise and fall of the date of internet. The research conducted on the dramatic growth and decline in this industry has shown that the venture capital industry, though smaller in size than the public markets, has succeeded in exercising a positive crook on the general economic environment. The venture capital industry is essentially an American phenomenon with its origin in family offic es entrusted with the task of managing the wealth of high profile individuals. With time these families hired professional managers from outside to oversee and proctor such investments. The venture capitalists invest funds in nascent business firms. Most of these firms have curb cash resources and a majority of them are subject to strict credit rationing. Besides, these firms are characterised by schooling asymmetries and high levels of