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What Is Venture Capital?

The term Venture Capital refers to investments by private investors in early stage companies. The capital is invested in the company’s infrastructure and balance sheet, and the VC will stay involved until the company reaches a certain level of credibility, size, and profit. Most venture capital funds last for up to 10 years, but some […]

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Types of Funding For Startups

Types of Funding For Startups There are many types of funding available for startups. Some of these are called seed funding and do not count toward subsequent rounds of funding. Seed funding is typically provided by family and friends, but it can also be an option for small companies. It can be fast or slow, […]

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Funding & Investors

Funding & Investors When a startup is trying to raise funds, it’s often necessary to look to investors for funds. Investing money is the most common form of outside capital for a new business, and this form of funding is very simple to understand. This type of funding involves borrowing money and paying it back […]

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Determinants of Firm Investment

In order to evaluate the determinants of firm investment, researchers conducted a study in four countries: Russia, Moldova, and Serbia. Their sample includes 170 firms in each country. The results revealed that profitability positively affects firm investment in all four countries. In Moldova and Romania, the positive effects were limited to cash holdings, while in […]

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The Effect of Uncertainty on Investment

The Effect of Uncertainty on Investment A new study suggests that uncertainty influences the behavior of firms in terms of investment. A number of studies have found that investment is more concentrated in larger firms. However, the differences in firm size are large, even within the same industry. Smaller firms are likely to be more […]

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What Does Venture Capital Entail?

The first major fundraising round in venture capital took place in 1978, when $750 million was raised. This was the era before the Employee Retirement Income Security Act (ERISA), which prohibited many risky investments in privately held businesses. In 1978, the US Labor Department relaxed ERISA restrictions under the “prudent man rule,” allowing the venture […]

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Funding & Investors – 3 Tips to Get Started

Finding funding and investors can be a challenge. While business angels and venture capitalists can be valuable sources of money, they have limited control over a business’s future direction. In order to find investors who will invest in a startup, entrepreneurs must be able to tell a compelling story. Below are three tips to get […]

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The Relationship Between Funding & Investors

The relationship between Funding & Investors is an important part of product management. In order to create a new product, a company must find funds from investors. When seeking investments, high-return projects are attractive. After a year, the rewards are shared with the investors. If the rewards exceed expectations, investors may continue investing. As such, […]

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How Firm Size Affects Investment

The distribution of firm investment is highly concentrated. Large firms account for the vast majority of output and economic activity. While firms of different sizes invest differently, their overall distribution is more pronounced. For instance, the largest firms account for about 70 percent of investment while only a small proportion invest in the same industry. […]