Down the venture capital route
Article Abstract:
Entrepreneurial start-up companies in the UK increasingly are turning to venture capitalists for financing as an alternative to traditional sources of capital. High interest rates have made the assumption of debt prohibitive and can put great pressure on those companies entering the debt markets. Venture capitalists typically invest for the long-term, which allows the management of the start-up company to take more innovative approaches. Venture capitalists are concerned with their compounded rate of return over years, typically 30% to 40% annually. Venture capitalists look at three components of a start-up's presentation: the validity of the idea, the quality of the people advancing the idea, and their strategy and how they propose to implement it.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1990
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Nursed towards healthy profits
Article Abstract:
Alta Berkeley Associates has developed a series of venture capital investment strategies especially for start-up healthcare and medical supply-related companies. Venture capitalists normally avoid start-up companies because: they are riskier than larger investments; they mature more slowly; and they have a higher failure rate. Alta Berkeley Associates uses partners' expertise in health care and high technology field to select the most successful investment candidates. Investors considering venturing into health care companies should be aware that many of them have their research and development already completed before setting-up business, but final product introduction can often be delayed by government testing regulations.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1989
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