Management and Organizational Studies 1023A/B Chapter Notes - Chapter 12, 13: Venture Capital, High High, Preferred Stock

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Barry Hawn

Document Summary

Founders will take their prototype and business plan on the road to seek venture capital funding to grow the business. Critical time that determines whether they have a viable business concept that will be funded or will disband because of the lack of investor interest. Individual venture capitalists or angel investors are typically wealthy individuals who invest their own money in emerging businesses at the very early stages in small deals. Venture capital industry as we know it today emerged in the late 1960s with the formation of the irst venture capital limited partnerships. Today, vc industry consists of several thousands of professionals about one thousand venture capital irms. Biggest concentration of irms in cali and massachusetts. Modern venture capital irms tend to specialize in a speciic line of business such as high-technology investments (signiicant) or hospitality, food, manufacturing, medical devices, etc. Three reasons exist as to why traditional sources of funding do not work for new or emerging businesses.