1. VCs Making Money
Venture capitalists seek to maximize economic returns. Considering all the risks in the development or expansion of business ventures, how do venture capitalists make money? How do venture capital firms balance their portfolios to minimize risks? Respond to two of your classmates’ postings.
2. Private Equity Market
Choose one of the following options and write a 200 word response. Respond to two of your classmates’ postings.
Option A: What is the private equity market? How does it differ from other funding sources? Identify three different kinds of investors in the private equity market. Do the goals of these investors differ? How?
Option B: Differentiate between venture capitalists and angels. Provide an example of a company that received seed investment from the private equity market. Why do you think that company approached the private equity market instead of other sources?
Venture Capital Investment Activity
Read the latest Money Tree Report on venture capital (click on summary report). In a 2-3 page paper, discuss the results of investing based on the stage of growth. What trends do you believe influenced the investing and the results? What predictions can you make for the future in venture capital investment activity? Include two references to support your key points.