Venture Capital when it is useful and when it

For a startup, relying on the funds made available by Venture Capital is a truly useful and effective tool. In fact, you can take advantage of large-scale financing in certain cases, sometimes greater than what you can find through Invitalia . This allows the startup to start the growth path that will allow the company to take off and the financiers to obtain the desired profit. Unfortunately, however, things don’t always go as everyone expects. One of the unexpected effects of this path concerns the possibility for Venture Capital to scale the company, taking control of it. This is a situation that is somewhat anomalous and generally unlikely to lead to positive final results.

There are more

than one reasons, we will explain Oman Phone Number List them shortly. But what is more important is to identify the tools that allow the startupper to maintain control of the company, even in the presence of cumbersome Venture Capital. Venture Capital when it is useful and when it becomes a problem In a previous article we explained how Venture Capital and Private Equity generally operate . In the case of Venture Capital we must talk about a financing action that should support the initial phase of the startup. For this reason it should be important that the investor believes in the project and above all in its growth prospects. This last factor is certainly the most important from a Venture Capital perspective. In this way, the startup’s shares will have a continuously growing value.

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In other cases

however, for different reasons, you decide to Iran Phone Number List scale the startup . There are various reasons why this may happen. Generally, however, it is not an operation that leads to the expected results for the future of the startup. Here we are talking about pure Venture Capital. In these cases, the person who brought large sums for participation is certainly not a specialist in the field in which the startup operates. It must then be considered that we are losing sight of the primary objective for which the startup itself was created. The case in which a giant in a certain sector decides to finance a startup in the same sector and then decides to acquire it is an even different case.

 

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