Why do venture capitalists almost always use staged financing and convertible securities to finance entrepreneurial companies?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 63% (19 reviews)
Staged financing is less risky to the venture capitalists They inv...View the full answer
Answered By
Surojit Das
I have vast knowledge in the field of Mathematics, Business Management and Marketing. Besides, I have been teaching on the topics Management leadership, Business Administration, Human Resource Management, Business Communication, Accounting, Auditing, Organizer Behaviours, Business Writing, Essay Writing, Copy Writing, Blog Writing since 2020. It is my personality to act quickly in any emergency situations when students need my services. I am very professional and serious in every questions students asked me at the time of dealing any projects. I have been serving detailed, quality, properly analysed research paper through the years.
4.80+
91+ Reviews
279+ Question Solved
Related Book For
Introduction to Corporate Finance
ISBN: 978-0324657937
2nd edition
Authors: Scott B. Smart, William L Megginson
Question Posted:
Students also viewed these Finance questions
-
Why do venture capitalists make quick decisions on the infeasibility of some business plans? When a business plan is not quickly determined to be infeasible, what happens next and why?
-
Venture capitalists provide funds to finance new companies (start-ups), usually in return for a share of the firms initial profits (if any). Of course, venture capitalists look to back experienced...
-
Why would venture capitalists provide financing in stages?
-
At the intersection of Texas Avenue and University Drive, a yellow subcompact car with mass 950 kg traveling east on University collides with a red pickup truck with mass 1900 kg that is traveling...
-
Two depository institutions have composite CAMELS ratings of 1 or 2 and are well capitalized. Thus, each institution falls into the FDIC Risk Category I deposit insurance assessment scheme. Further,...
-
Basedontheabove,writealiteraturereviewonFDI.SelectONEorganizationthatisinvolvedinFDIinMalaysia.Discussonthebackground,advantagesanddisadvantagestheorganizationhasonbothhostandhomecountries.Youshouldju...
-
The goal-setting step in the planning phase of the strategic marketing process sets quantified objectives for use in the evaluation phase. What does a manager do if measured results fail to meet...
-
When viscous dissipation is included, Equation 8.48 (multiplied by pcp) becomes This problem explores the importance of viscous dissipation. The conditions under consideration are laminar, fully...
-
The following data were taken from the records of Metlock Company for the fiscal year ended June 30, 2022
-
You have just been employed as an investment analyst in an investment bank. You took over from someone who left with a number of issues that need answers. The issues are itemized below: (i) (ii) A...
-
Why do you think that private limited partnerships have come to dominate the U. S. venture capital industry? Can you think of any weaknesses this organizational form may have as a vehicle for...
-
Entrepreneurs often refer to venture capitalists as vulture capitalists, due to the amount of equity they demand before investing. Do you think the standard venture capital pricing formula is a...
-
A mixture of 2 mol of CO2 and 1 mol of O2 is heated to 3200 K at a pressure of 2 atm. Determine the equilibrium composition of the mixture, assuming that only CO2, CO, O2, and O are present.
-
You are expected to suggest several functional tactics and how these short-term activities are used to achieve short term objectives and establish a competitive advantage. Within the general...
-
Carbon dioxide and nitrogen experience equimolar counterdiffusion in a circular tube whose length and diameter are 1m and 50mm, respectively. The system is at a total pressure of 1 atm and a...
-
A licensee recently was placed on court - ordered probation. Does the licensee have to report this to the Board?
-
1. Technology and Operations What task does the operations function in a manufacturing organisation and in a service organisation perform? How does operations strategy contribute to make to corporate...
-
Do the Following current market analysis - geographic , psychographic and behavioral of Klean Kanteen THIS IS THE DETAILS AND DRAFTS OF PAPER. (THIS IS THE BASIS) Open the link;...
-
Washers used in a certain application are supposed to have a thickness of 2 millimeters. A quality control engineer measures the thicknesses for a sample of washers and tests H0: = 2 versus H1: 2....
-
Explain the term global capital markets. This chapter primarily discusses global equity markets. What other types of financial instruments are traded in these markets? How important are global...
-
The stream function for an incompressible, two-dimensional flow field is \[ \psi=a y-b y^{3} \] where \(a\) and \(b\) are constants. Is this an irrotational flow? Explain.
-
Why must incremental after-tax cash flows rather than total cash flows be evaluated in project analysis?
-
Differentiate between sunk costs and opportunity costs. Which of these costs should be included in incremental cash flows, and which should be excluded?
-
Why is it important to consider cannibalization in situations where a company is considering adding substitute products to its product line?
-
Show that the convexity for a zero coupon bond with m payments per year is (m) n(n + -)(1+ m m
-
Abdul Canarte , a Central Bank economist, noticed that the total group purchasing basket of goods (CPI) has gone from $149,740.00 to $344,460.00 in 8 years. With monthly compounding, what is the...
-
ABC Corporation expects sales next year to be $50,000,000. Inventory and accounts receivable (combined) will increase $8,000,000 to accommodate this sales level. The company has a profit margin of 6...
Study smarter with the SolutionInn App