A maturing market
Article Abstract:
The British venture capital industry has benefited from favorable economic and political conditions during the 1980s. However, there are indications that the industry is beginning to mature after six years of rapid growth. Since 1982, the number of venture capital firms in the UK has more than doubled, the pool of funds available for venture capital has quadrupled, and the amount of capital raised annually by independent funds has grown 16 times. The sharp drop in stock market prices in 1987 may lead to a consolidation of the venture capital industry. Measuring the performance of venture capital funds will become increasingly important, and venture capital firms will have to develop alternative ways to exit from their investments, because the number of stock flotations is declining. However, the drop in stock prices has reduced the cost of venture capital investing, creating opportunities for venture capital firms that have funds to invest.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1988
User Contributions:
Comment about this article or add new information about this topic:
How to succeed with a start-up
Article Abstract:
The hazards of starting a new business can be minimized by sound business management and financial planning. Each member of the new venture's management team should have a defined purpose - managers who are on the payroll because of personal reasons, or because they have invested money in the project are rarely competent. The new business venture should also have strong financial controls and a detailed business plan that includes profit forecasts, cash flow projections, and contingency plans for unforeseen problems. The financing for a new enterprise should be a mixture of equity investments and term lending. Asset lives should be matched to liabilities; for example, long-term assets (such as property) should not be financed with loans that are payable on demand.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1986
User Contributions:
Comment about this article or add new information about this topic:
A nose for competitive advantage
Article Abstract:
A venture capital firm should do more for the companies it invests in with more than just provide funds. Venture capitalists should have both the willingness and the ability to get involved in the management of the enterprises that they sponsor. This is especially true in the area of financial management, as small companies often cannot afford to hire experienced financial executives.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1988
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: A matter of principles - Part II. The derivative debate. CoCo goes public
- Abstracts: At home in the dome. Ready for anything. ELO show touch' of success
- Abstracts: Measuring the causes of economic insecurity: construction of a composite index. Measuring income
- Abstracts: How accountants invented accounting and writing. A mine of useful information. A Scottish Farmer and His Accounts: 1822-23
- Abstracts: Sitting pretty. Mail-order family affair