Venture Capital Risk Financing for Growing Companies
Article Abstract:
Small businesses are increasingly more important in the economy. According to a research study on venture capital, very few small business owners are aware of venture capital and rely on their banks and accountants. More time is spent in these businesses buying time from creditors than is spent managing their businesses. Venture capital, also called risk capital, is money, unsecured, invested in or loaned to a company by a source unrelated to major shareholders. The funding may take numerous forms. There are three basic types of small businesses. One type is classified as 'high potential venture'; they are interested in substantial growth to become a large company. In evaluating a small business, the venture capitalist will search for one area of competence; either the people or the product. The Association of Canadian Venture Capital Companies was formed in 1974 and has been expanding activities in recent-years. In 1981, a study by the Association determined that equity investment provides significant benefits to the Canadian economy, in both taxes and jobs. Several areas should be covered in the company's proposal, including financial statements, forecasts, a brief history, an outline of money use, an explanation of operations, a review of the marketing aspects, resumes on management and an outline of needed labor. Consideration needs to be taken of amount of control given to investors while assuring gain.
Publication Name: CA Magazine
Subject: Business
ISSN: 0317-6878
Year: 1983
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Venture capital in the high-yield institutional market
Article Abstract:
PT Datakom Asia, a start-up provider of direct broadcast satellite television services, launched a successful Yankee bond issue in Jul 1997, making it the first sub-B rated Asian company to crack the US securities market. The issue was so successful, garnering pledges of $600 million, that the issue volume was boosted from $225 million to $260 million. The bond issue's spread over Treasuries was the largest ever for an Asian Yankee bond, and the ruling Suharto family has a one-third share in the company.
Publication Name: Asiamoney
Subject: Business
ISSN: 1607-0526
Year: 1997
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A unique venture
Article Abstract:
The Karnaphuli Fertilizer Company Ltd. represents Bangladesh's first and largest joint private/public sector foreign investment, obtaining selling prices for ammonia and urea at $168 and $211 a ton, respectively. Initial financial setbacks were resolved by the U.K. merchant bank J Henry Schroder and Co., and involved restructuring contractor, shareholder, and export credit loans.
Publication Name: Asiamoney
Subject: Business
ISSN: 1607-0526
Year: 1997
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