Finance

Finance

This investing plan was created for a hypothetical investment company that buys other companies as investments. In this sample, the hypothetical Venture Capital firm starts with $20,000 as an initial investment fund. In its early months of existence, it invests $10,000 each in four companies. It receives a management fee of two percent (2%) of the fund value, paid quarterly. It pays salaries to its partners and other employees, and office expenses, from the management fee. The investments show up in the Cash Flow table as the purchase of long-term assets, which also puts them into the balance sheet as ...