Capital
If there is one universal attribute that applies to all investors, it is the undying thirst for higher returns. Venture capital (VC) is founded on this fundamental premise, as it has great potential to provide returns far in excess of conventional methods of investments. What makes VC so important is that it is often the only source of funds to new entrepreneurs, as banks and financial institutions provide finance only against securities or guarantees. VC has grown from a small investment pool in the 60s and 70s to a full-fledged investment tool and a key element in corporate and institutional investment portfolio.

The term 'venture capital' is often used interchangeably with private equity investing, which refers to venture investing and buy out. The astonishing growth and successes of new generation companies such as Apple, Intel, Federal Express, Microsoft, Yahoo and Cisco is a sterling tribute to VC, as these companies…...

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Bibliography

Asian Development Bank Report - 'Development of Venture Capital in China', May 2002, Retrieved at   Accessed on 26 April, 2004http://www.adb.org/Documents/Reports/Dev_SME_Fin_System/sme_v1_taskb.pdf .

Axiss Australia, Australian Government - 'Venture Capital and Private Equity in Australia', Data File Series, 2004, Retrieved from www.axiss.com.au/content/pubs/_data_file_series/downloads/venturecapitalfinal2004.pdf. Accessed on 26 April, 2004

Bovaird, C - 'Introduction to Venture Capital Finance', London; Pitman, 1990, pp.32-36

BVCA - 'The economic impact of private equity and venture capital in the UK Economy', November, 2003, Retrieved from www.altassets.com/casefor/countries/2003/nz4084.php. Accessed on 26 April, 2004

Capital
According to the National Venture Capital Association (NVCA, 2012), the venture capital industry is attracted to companies that are developing significant innovations. Some examples cited are a new piece of software, a new drug or a new model for consumer sales. Venture capitalists enter the industry when the product is ready to take to market, and is in a position to enjoy significant growth. Venture capitalists therefore seek out businesses with a high potential for success, and they provide the capital that allows those businesses to succeed.

The businesses that venture capitalists prefer are at a stage where they are more than just an idea, that there is something the company can take to market. Venture capitalists want to see that there are revenue streams coming down the pipeline, because the venture capitalist needs to be able to envision an exit strategy.

Often, venture capitalists seek out companies where they can…...

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Works Cited:

Babson. (1999). Neverfail computing. Arthur M. Blank Center for Entrepreneurship. Retrieved May 7, 2012 from  http://higheredbcs.wiley.com/legacy/college/bygrave/0471755451/add_cases/neverfail_case.pdf 

Koester, E. (2009). Venture capital term sheet: Registration rights. Avvo. Retrieved May 7, 2012 from  http://www.avvo.com/legal-guides/ugc/venture-capital-term-sheet-registration-rights 

NVCA. (2012). VC industry overview. National Venture Capital Association. Retrieved May 7, 2012 from  http://www.nvca.org/index.php?option=com_content&view=article&id=141&Itemid=589

Capital
According to the National Venture Capital Association in the United States, venture capitalists help entrepreneurs "turn innovative ideas and scientific advances into products and services…" Venture capitalists do this by providing both funding and guidance, typically to small businesses that need this funding and guidance to take good ideas into the rapid growth stage of the business life cycle. Venture capitalists usually focus on new, innovative products and techniques. VC not only lends entrepreneurs they money that they need to bring a product to market, but also can provide managerial expertise, especially to firms that are otherwise run by scientists, engineers or investors. That business expertise helps to ensure that the business can manage its rapid growth through the IPO process.

A venture capitalist takes on a significant amount of risk, in that when the VC invests, the business idea has not yet proven to be viable in the market.…...

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Works Cited:

NVCA. (2012). VC industry overview. National Venture Capital Association. Retrieved May 2, 2012 from  http://www.nvca.org/index.php?option=com_content&view=article&id=141&Itemid=589 

"Southern Cross Latin American Private Equity Fund." IESE Business School E-115-E.

Capital Case
What venture capitalists agree?

The venture capital industry is riddled with both mystery and intrigue. Often, many venture capitalists are captivating by markets and technologies completely original in regards to product offerings. However, by pursuing these risky endeavors, many newly formulated companies and technologies crumble shortly after inception. To mitigate these risks, venture capitalists formulate measures to reduce the risk associated with investing in start up projects. Because success often hinges of personal fortitude and experience, venture capital investment criteria often vary between organizations.

Within the case, many core concepts regarding venture capital funding remained constant. One of these concepts was proper timing. All venture capitalists agreed that timing is a critical function in regards to overall returns. The nature of venture capitalism is inherently risky. As a result, venture capitalists must be compensated in accordance with the underlying risk associated with the venture. Depending on the timing of the…...

Background Investible PTY LTD. offers a degree that distinguishes and creates pioneering capability and limits the risk of pre-IPO speculation. The organization gives business constructing projects; and creates a pipeline of investible companies and startup organized functionality. It offers the “lab,” expert enterprise development and execution motor that ensures individuals are geared up with the gadgets to collect and process data, create further decisions, networks, and additionally put in place compliances. Investible acts as the admission to an association of startup funding, which can open doorways to potential partners for businesses and the firm. Investible PTY LTD modified into consolidated in 2015 and is situated in Sydney, Australia. According to LinkedIn, Investible has roughly twenty-five employees. Comment by Ingrid Martin: These two sentences don’t make sense?? Comment by Ingrid Martin: Which is what? Comment by Ingrid Martin: I’m not sure where this information comes from but it is really confusing… you…...

Furthermore, capital gains normally tend to be spread across a wider income scale than many believe. According to the IRS Individual Income Tax Returns, Preliminary Data, 1992 federal income tax returns, 55% of returns claiming capital gains were from incomes of $50,000 or less, including a capital gain (Thorning, 1995). hat this information appears to come down to is that the capital gains tax affects almost everyone, which happens to affect the economy in general.
Tax Act of 2011

ith some of the huge advantages that have been back loaded, the Tax Relief Act of 2001 displays itself as more of a tax odyssey than what would be considered a tax act. The most positive of those that are called our planners really just provide estate tax repeal which is a 50/50 possibility of essentially being executed. Taxpayers and planners similarly are left with the troublesome query, "hat is the contemporary…...

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Works Cited

Gordon, M. (2209). Stock Market Looks More Like Face of America, Survey Says. The Associated Press Business News, 25.

John Freear and William E. Wetzel, J. (2009). Who Bankrolls High-Tech Entrepreneurs? American Council for Capital Formation Center for Policy Research,, 101.

Michael J. Graetz. (2010). Distributional Analysis of Tax Policy. Discovery and the Capitalist Process, 105-121.

Robert Gillingham, a. J. (2007). The Effect of Marginal Tax Rates on Capital Gains Revenue,. National Tax Journal, 123.

Capital Decision
Making a decision as a venture capitalist, whether as a director/adviser for a venture capital firm or as an individual investor looking for a substantial investment opportunity, requires a great deal of consideration on various levels. Before a decision to invest is made, a careful consideration of the quantitative and qualitative aspects of a company must be undertaken, and the potential payoff of any investment must be weighed against the risks identified both within the company and in its operating environment. The following paragraphs will present a brief analysis of two publicly traded companies that are well-established, yet are also potentially large investment opportunities for an entity with an appropriate amount of capital. The risks and current states of these companies will be assessed along with other details and information in order to determine which company represents the best investment.

pSividia

pSividia Corp., founded in 1987, specializes in developing and producing…...

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References

Yahoo Finance. (2011). PSVD. Accessed 2 June 2011.  http://finance.yahoo.com/q/pr?s=PSDV+Profile 

Yahoo Finance. (2011). SMED. Accessed 2 June 2011.

 http://finance.yahoo.com/q/pr?s=SMED+Profile

This would involve winding down investment banking to focus on venture capital. A second option is to start a fund in Russia, with local partners there, to capitalize on that country's telecommunications market. The company could be split under the second scenario into three different divisions. The third option is to retain the status quo, which has generally been successful, but offers limited upside compared to the other options.
t is recommended that the first option be undertaken. There are a few good reasons for this. The third option offers limited upside. As the up-front cost of technology increase for telecommunications providers, Columbia's principles are going to be increasingly unable to meet the capital requirements. So this option is superior to the status quo. The investment banking option can be cut, but do not feel that it needs to be, especially when the second option involved hiring professional management…...

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It is recommended that the first option be undertaken. There are a few good reasons for this. The third option offers limited upside. As the up-front cost of technology increase for telecommunications providers, Columbia's principles are going to be increasingly unable to meet the capital requirements. So this option is superior to the status quo. The investment banking option can be cut, but I do not feel that it needs to be, especially when the second option involved hiring professional management to run the investment banking arm.

The second option, overall, is too complex to be executed right now. Columbia has been successful because the principles have expertise the subject area and take a hands-on approach. They are the classic "value-added" venture capitalists, whose input dramatically increases the value of the investment. Operating in Russia or South America takes the principles outside of their comfort zones. Within a couple of days of this meeting, the risks inherent in Russia will become apparent, and even if the partners wanted to invest in Russia they would have scrapped the program on account of the financial crisis. South America, of course, had its own financial crisis in 1999.

The instability of the emerging markets, and the lack of familiarity of the principles with these markets means that they are taking on far too much risk. In addition, there are the risks associated with moving from a simple, flexible organizational structure to one characterized by complexity, joint ventures, uncertain chains of command and investments in businesses the principles have little experience with. Thus, the second option is too risky. Under the first option, the principles can make one or two strategic investments overseas to move slowly along the learning curve. It is recommended, therefore, that Columbia accept outside capital in order to facilitate growth, but also as retain control of the company and provide more opportunities to the younger partners.

" (Kinnunen, 2004) the work of Kaplan and Schroar (2003) states findings that the past performance is highly relative to capitals flows to private equity funds.
The work of Mishra, Kemmerer, and Shenoy entitled: "Managing Venture Capital Investment Decisions: A Knowledge-ased Approach" relates the building of a causal map of the investment decision through use of interviewing venture capitalists and then converting this information into a "causal ayes net" which are stated to be "especially suited for domains characterized by a high degree of uncertainty." (Mishra, Kemmerer, and Shenoy, 2001) This technique has also been utilized in developing artificial intelligence and even used "in medical diagnosis, modeling portfolio risk and return, and new product development..." And are based on "probability theory." (Mishra, Kemmerer, and Shenoy, 2001) This method is reported to be one that increases the likelihood of gaining an understanding of the decision-making process of Venture Capitalists (VCs) and that…...

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Bibliography

Kaplan, S. & Schroar, a. 2003. Private Equity Performance: Returns, Persistence and Capital Flows. MIT Sloan Working Paper No. 4446-03; AFA 2004 San Diego Meetings.

Cochrane, John H. The Risk and Return of Venture Capital. Working paper, University of Chicago, 2001.

Kinnunen, Harri (2004) Institutional Investor's Decision Making Criteria for Investing in Venture Capital Funds. Frontiers of E-Business Research 2004. Online available at  http://www.ebrc.info/kuvat/695-709_04.pdf 

Patel, Pankaj and D'Souza, Rodney (2008) Uncovering Knowledge Structures of Venture Capital Investment Decision Making. A Working Paper for SBA Office of Advocacy. Jan 2008. Online available at  http://www.sba.gov/advo/research/rs315tot.pdf

Capital orks seeks to explain the venture capital industry, debunk myths and offer a view of what the role of venture capital is to the U.S. economy.
Zider begins by explaining that venture capital does not provide as much money to start-ups as is often considered to be the case. In general, venture capital goes to follow-on funding for projects that were originally developed by governments or corporations. Those latter bodies perform the innovation task, and venture capital comes in once the product/service has been developed somewhat and needs to be taken to market. Because of this, venture capital is short-term money, not long-term. The objective of the venture capitalist is to commercialize an idea and then exit either by taking the company public or selling to a larger company. Venture capitalists exist, Zider points out, because this segment of the capital markets is underserved by other players. In that…...

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Works Cited:

Zider, B. (1998). How venture capital works. Harvard Business Review. Nov-Dec 1998.

1
0.107

0.107

1.788005

4.37%

7.24%

D 20 Lev

1.2925

0.120475

0.11038

1.653411

4.05%

7.22%

D 50 Lev

1.87

0.1609

0.16045

-0.1731

-0.44%

7.05%

5. The only project that is unacceptable is Project D. At the 50% leverage level. This has a negative NPV. The other projects at each leverage level all have positive net present values. The following graph shows the NPVs for the different projects:

6. My objective in making this decision is to maximize firm value. The projects are mutually exclusive. I would use NPV as the main criteria. This means that Project B. is the most desirable, at the zero leverage level. Project A is the second-most desirable, against at the zero leverage level. Project C. is the third-most desirable. Project D. is the least desirable and at the 50% leverage level is unacceptable. I feel that it is best to use NPV has the criteria because the return on uninvested capital is going to be low. Thus, although the highest level of IRR is with Project…...

Capital Requirement and Risk ehavior
Arab African International ank

Midan ElSaray El Koubra, Garden City Caoro

The research will mainly dwell on the capital requirements and risk behavior of banks, more in particular the credit risk. The purpose of this research is to identify and analyze the relationship between capital requirements and the risk behavior of banks in Egypt

more in particular the Arab African International ank, which is the case study for this research. Secondly, the research will seek to investigate the impact of capital regulation on the banking behaviors and particularly on the levels of credit risk of banks operating in Egypt

The findings of the research show that there is negative relationship between capital requirement and banks' risk behavior; the findings also show there is empirical evidence to prove that capital regulations have a negative impact on credit risk of banks levels of credit risk of banks operating in Egypt.

Table of content

Chapter…...

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Bibliography

Aggarwal, R. And K. Jacques, (1998), a Simultaneous Equation Estimation of the Impact of Prompt Corrective Action on Bank Capital and Risk, New York, 12-23

Avery, R.B. And A.B. Berger, (1991), Risk-based capital and deposit insurance reform, Journal of Banking and Finance pp 847-874

Berger, A.N., Herring R.J. And Szego, G.P. (1995), the Role of Capital in Financial

Institutions, Journal of Banking and Finance pp 19, 393-430.

The company finances foreign operations with debt from a number of different countries. It does this on the basis of the parent company's credit rating, which illustrates that the implicit understanding with respect to the parent company default guarantee of subsidiary debt holds across different debt markets (Stern & Chew, 2003, 394).
There are also times when the capital structure is determined more by strategic considerations than any other. Many firms operate foreign subsidiaries as joint ventures, for example, because this gives the firm greater access to foreign capital markets and usually reduces the country risk and market risk associated with the subsidiary, when compared to a greenfield subsidiary. There is evidence that firms using this tactic do so in part to reduce the costs associated with foreign market entry, including financing costs. Hennart's (1991, 483) study of Japanese subsidiaries in the United States showed that transaction costs played a…...

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Works Cited:

Desai, M.; Foley, C. & Hines, J. (2003). A multinational perspective on capital structure choice and internal capital markets. Harvard Business School. Retrieved February 11, 2011 from  http://www.people.hbs.edu/ffoley/capstructure.pdf 

Gropp, R. (2002). Local taxes and capital structure choice. International Tax and Public Finance. Vol. 9 (1) 51-71.

Hennart, J. (1991). The transaction costs theory of joint ventures: An empirical study of Japanese subsidiaries in the United States. Management Science. Vol. 37 (4).

Stern, J. & Chew, D. (2003). The revolution in corporate finance. Malden, MA: Blackwell Publishing.

Although advertising costs can be substantial, it is essential that companies place significant amounts of funding into advertising. Such funding is necessary because it provides companies with a competitive advantage. According to Doraszelski & Markovich, (2007)

"Practitioners know very well the value of advertising to achieving their long-term market share and profitability goals. A survey of senior executives in 1999 reveals that 82.9% somewhat or strongly agree that good advertising can provide their company with an edge over the competition in the marketplace. Furthermore, 86.8% somewhat or strongly agree that advertising is a long-term investment that contributes to the financial growth and stability of their company (American Advertising Federation, 1999; Doraszelski & Markovich, 2007)."

The authors also explain that firms believe that advertising has the capacity to give them a sustainable competitive advantage over other firms (Doraszelski & Markovich, 2007). Nevertheless, dynamic models of advertising competition, assert that the opposite is true.…...

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Works Cited

Bagwell, K. (2005) the Economic Analysis of Advertising.  http://ideas.repec.org/h/eee/indchp/3-28.html 

"Brand Value."  http://dictionary.bnet.com/definition/brand+value.html 

Doraszelski U., Markovich S. (2007). Advertising dynamics and competitive advantage. RAND Journal of Economics Vol. 38, No. 3, pp. 557 -- 592

Grullon G., Kanatas G. And Kumar P. 2006. The Impact of Capital Structure on Advertising Competition: An Empirical Study.

ith a strong customer and employee basis, the company envisions taking early leadership of the global market. This is also to be based upon management excellence on a local scale. The management team is envisioned to be capable of translating vision into performance on both a local and global scale, while also investing strategically to maximize profitability and performance.

d. In terms of Research and Development, Applied Materials has increased its investments despite economic downturns. The purpose of this was to increase its potential future profitability by providing advanced manufacturing systems for its customers worldwide. This proved to be a good strategy, as the company had build a broad product line that catered for nearly every chip manufacturing stage. In order to reach the next step; integrating systems to perform a specific process sequence, a new facility was needed, and 1997 saw the beginning of construction on the Equipment and Process…...

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With a strong customer and employee basis, the company envisions taking early leadership of the global market. This is also to be based upon management excellence on a local scale. The management team is envisioned to be capable of translating vision into performance on both a local and global scale, while also investing strategically to maximize profitability and performance.

d. In terms of Research and Development, Applied Materials has increased its investments despite economic downturns. The purpose of this was to increase its potential future profitability by providing advanced manufacturing systems for its customers worldwide. This proved to be a good strategy, as the company had build a broad product line that catered for nearly every chip manufacturing stage. In order to reach the next step; integrating systems to perform a specific process sequence, a new facility was needed, and 1997 saw the beginning of construction on the Equipment and Process Integration Center (EPIC).

EPIC represents the first facility of its kind in the semiconductor industry, in its capacity as a dedicated 200mm pilot line integration facility. Specifically, the Center enables the company's customers to make their technology transitions with greater speed and ease. To do this, the Center enables them to evaluate and integrate new manufacturing systems in advance of installing these. This provides the company with an important leading edge in the global marketplace. To accomplish this was a challenge on multiple levels that did not end with the Center opening its doors in 1998. Indeed, in order to adhere to its central aims, engineers for the center had to effectively implement systems by which they could set up their systems as often as once per month and make quick modifications according to differing requirements.

Financial managers can adapt their strategies to navigate the uncertainties of a rapidly changing economic landscape by:

1. Conducting frequent financial analysis and monitoring key performance indicators to stay informed about market trends and economic conditions.

2. Developing contingency plans and stress-testing potential scenarios to prepare for unexpected events and mitigate risks.

3. Diversifying investments and portfolios to spread risk and limit exposure to any single economic sector or asset class.

4. Maintaining a flexible and agile approach to decision-making, including being willing to adjust strategies and tactics as needed in response to changing economic conditions.

5. Building strong relationships with key stakeholders, such as....

1. The National Small Industries Corporation (NSIC) was established in 1955 as a public sector enterprise under the Ministry of Micro, Small and Medium Enterprises (MSME). Its primary objective is to promote and develop micro, small, and medium enterprises (MSMEs) in India. NSIC plays a pivotal role in fostering the growth of MSMEs by providing a range of support services, including marketing, technology, finance, and skill development.

2. NSIC's mission is to facilitate the growth and competitiveness of MSMEs in India. It aims to achieve this by providing a range of integrated support services that address the various challenges faced by....

One of the biggest obstacles aspiring entrepreneurs face when starting a new venture is securing funding. Many new ventures require a significant amount of capital to get off the ground, whether it be for product development, marketing, hiring employees, or other essential expenses. Without access to sufficient funding, aspiring entrepreneurs may struggle to turn their ideas into a successful business. In addition to securing funding, other common obstacles include market competition, lack of experience, fear of failure, and uncertainty about the future.
One way aspiring entrepreneurs can overcome the obstacle of securing funding is by exploring various sources of capital, such....

The Daunting Quest of Aspiring Entrepreneurs: Surmounting the Towering Obstacle of Starting a New Venture

The entrepreneurial journey is an alluring path, often perceived as a ticket to financial freedom, innovation, and societal impact. However, beneath this enticing façade lies a landscape fraught with challenges that can deter even the most ambitious of aspiring entrepreneurs. Among these obstacles, one stands as a formidable barrier: the initial stages of starting a new venture.

1. Capital Constraints: The Financial Bottleneck

Funding is the lifeblood of any business, and its acquisition can be a daunting task for nascent entrepreneurs. Without adequate capital, aspiring entrepreneurs may struggle....