Episode 2 - What Venture Capitalists Do
Author: Bill Janeway | Source: INET
What is the relationship between entrepreneurial firms and venture capital? In providing start-up financing, venture capital investment may earn high payoffs if a new technology succeeds, but also risks large losses if it does not. Janeway reviews the various strategies VCs have taken in financing new technology firms and the factors influencing their decision-making. He also discusses the VC's relationship with the entrepreneur and their record in building technologically innovative firms. He also explains why certain sectors might face more obstacles than others in attracting venture capital.