Ip_5 Essay Example | Topics and Well Written Essays - 500 words

Ip_5 - Essay Example finished innovative business ideas and proper slaying of the business ideas at the right place at the right time with the help of the right people. on that point are lots of guidances such as venture capital, growth capital and debt capital, for an entrepreneur to gain vigor money for his business feign capital (VC) is funding invested, or available for investment, in an enterprise that offers the chance of profit along with the possibility of loss. (Venture Capital, 2007) Venture capital was once known as risk capital. besides the name has confused lot of investors and it has been changed as venture capital. There is no guarantee for profit through this type of investment. If the business succeeded in making profit then the investors will also get their parcel out from the profit. If the business makes lose then the investors may also lose their money proportional to the loss incurred to the business. Venture capital investments are made in the form of cas h for shares in the invested company.Growth capital is a funding that allows a company to accelerate its growth. For new startup companies, growth capital is the second full stop of funding after seed money. (Business Definition for Growth Capital, 2009) Growth capital investor will normally learn an completed company for his investments. Compared to venture capital investor, growth capital investor may have his money to a greater extent safe because of the maturity of the company. The financial abilities and the market presence of these companies will be much more established than a venture capital oriented company.Debt capital is the capital, usually money, raised through issuing bonds. Although to the highest degree of the time the capital raised is money, it could be other goods of value as well. The capital raised must(prenominal) be paid back to those who finance the debt. Both private companies and governments can raise debt capital this way (What is Debt Capital? 2003) Compared to the other two capitals, venture and growth capitals, debt