CHAPTER-3 VENTURE CAPITAL 3.1 MEANING:- Venture capital is a private and institutional investment made to new start-up companies. It also involves risk means uncertain outcome in the expectation of huge profit. The term venture capital means financing that investors provide to startup companies and small businesses that are believe to be having long term growth potential. It is defined as “venture capital fund” under section 2(m) of the SEBI (Venture Capital Fund) Regulations, 1996. Under section
building socities, finance houses, venture capitalists, foreign exchange companies, savings banks, microfinance institutions and other money lenders. Grant (2010) assets that the industry in which an organisation is operating in, influences the competition and the profitability of that organisation. Market Structure for Ecobank Monopolistic competition- characterised by quite a number of banks and other financial institutions offering the same products. 2.1 The Five Forces Model Porter (1998) stated
1. What tips can you offer Brian Razzaque for creating a business plan that will attract the capital SocialToaster needs to fuel its growth? Answer: Creating a business plan is important for attracting investment in a company regardless of the type (equity or debt) of capital being provided through the investment. The key to creating a great business plan is creating a document that answers all of the questions a potential investor would be interested in. Investors are not interested in flashy,
In mixed economy, both public sector and additionally private sector industries will be working. Next, government practices strict control and direction over private area ventures. Then, the whole mixed economic structure is liable to the arranging of the Government. Under mixed economy, private companies and individuals have ideal to claim and utilize property, and also government finds a way to give standardized savings
their program of eradicating child labor through its NGO but eventually landing up finding the challenges poised by the government and the market forces. The market failures they could end up addressing are:- The inefficiency in coordination among its five departments rendered them insufficient to the market. All the departments aim to achieve same objective and work on the same motive of serving the people but the inadequacy of funds for operating and the expenses were mismatching that it makes them
The company is aiming for perpetual growth through an unchanging venture spirit. In financial year 2016/2017, the company has achieved strong growth in segment income and free cash flow. This is the result of development in three key brands including SoftBank and Y!mobile smartphone brands and the SoftBank Hikari fiber-optic
Sony and MGM merger acquisition too place on April 8, 2005. The acquisition was not carried by Sony alone. It was a joint acquisition of Comcast, Sony Corporation of America with Texas Pacific Group. The Texas Pacific Group is now referred to as TPG Capital. Providence Equity Partners was also a partner in the acquisition. It was believed that this merger would result in the generation of a business with billions in sales and shares. In addition to this, the merger would provide Sony with an extensive
Application of Porter’s Five Forces The main objective of Porter’s five forces is to assess the attractiveness of an industry by analysing the five forces acting upon it. Once this is evaluated and understood, the business leaders should be able to analyse whether it has a high, medium or low impact on the industry attractiveness. Porter (2008) suggested that the industry competition intensity is determined by the relative strengths of five forces which are competitive rivalry among
industry. 2) Horizontal Acquisitions Buying a competitor or a business in a highly related industry--which increases the company's market power--provides the company with the size it needs to exploit its core competence and gain a competitive advantage in its primary market. When a competitor in the same industry is acquired, a company has engaged in a horizontal acquisition. 3) Vertical Acquisitions A vertical acquisition has occurred when a company acquires a supplier or distributor,
lower cost and most firms use innovative ways to this. EMNC’s usually have an advantage of lower cost, that is provided from their home country as it has low labor costs, cheaper raw material etc, so most of the MNC’s usually locate their production faculties in places with lower labor costs and cheaper materials. There are other innovative ways to reduce and we will describe five of them: A: Mixing labor and capital in innovative