GLOBAL VENTURE

Global Venture



Global Venture

There are not many young fledgling companies who do not have enough finance to commence the company, nor can they receive loans from banks or other lending institutions. This is because they have no supplies that they can offer as collateral. With no protection to offer, bringing a lending institution to behind and invest in them is difficult. But all is not lost.  Professionals fund those companies that have the size for speedy growth and have the potential of tremendously enhancing their worth on a global scale. This money is summoned as Global venture capital.

Formerly whenever money was invested in a company, many factors were considered the fashion of market available for the product, the economic viability, and its location in the stock market. Today however globalization is a factor to contend with. The investors want to be the 1st in the market to be associated with something that is truly “hot' and are arranged to take the “high risk” factor in their step-out because they know that it is probable to produce tremendously high returns. In return for the finance provided by the investor, the venture capitalist earns equity portions in the company and actively participates in its functioning. The fashion of control exercised is not a day-to-day control, but a worth supplemental one - which method he offers his technical knowledge to ensure that the company comes its full potential as soon as possible.( Grossman, 1997)

The global venture finance is given to companies at various stages. If the finance is provided to support only the development of a individual product afterward it is summoned as seed financing. There are companies who have commenced their finance but have not commenced marketing. Capital provided to such companies is summoned as startup financing because the finance invested ...