This article has multiple issues. Unsourced material may be challenged and removed. There are several categories startup and new venture management pdf financing possibilities.
These are private investors who are using their own capital to finance a venture’s need. VC firms may also provide expertise the venture is lacking, such as legal or marketing knowledge. The following schematics shown here are called the process data models. All activities that find place in the venture capital financing process are displayed at the left side of the model. Each box stands for a stage of the process and each stage has a number of activities. At the right side, there are concepts. University of Utrecht in the Netherlands.
A Dutch venture named High 5 Business Solution V. To open this portal, the venture needs some financial resources, they also need marketeers and market researchers to investigate whether there is a market for their idea. To attract these financial and non-financial resources, the executives of the venture decide to approach ABN AMRO Bank to see if the bank is interested in their idea. After a few meetings, the executives are successful in convincing the bank to take a look in the feasibility of the idea. ABN AMRO decides to put a few experts for investigation. After two weeks, the bank decides to invest. They come to an agreement and invest a small amount of money into the venture.
The bank also decides to provide a small team of marketeers and market researchers and a supervisor. This is done to help the venture with the realization of their idea and to monitor the activities in the venture. At this stage, the risk of losing the investment is tremendously high, because there are so many uncertain factors. The market research may reveal that there is no demand for the product or service, or it may reveal that there is already established companies serving this demand. Young shows that the risk of losing the investment for the VC firm is around 66.