Tag : investment funding

Venture Capital Return on Investment
07 Mar

Venture Capital Return on Investment

Return of investment is the magic word of investment. The term that is usually shortened to ROI is the key goal of investment. Venture capital return on investment is expected to be higher than normal.

Return on investment is one of the simple to understand terms of the financial world. It refers to what you get back for what you put in. If you invest one dollar, and the dollar earns .25 cents, your return on investment is 25%. Return on investment is also given for a time frame. In the same example above, if you invested a dollar and the dollar earns .25 cents every year for four years, your return on investment at the end of the four years would be 100%. You have doubled your money. The yearly return on investment would still be 25% per year. Venture capital return on investment should range at least 20% annually.learn more details on this website.

The goal of every venture capital deal is to equal the first one in the industries infant days. General George Doriot invested $70,000 in Digital Equipment Corporation. This is considered an early example of venture capital for two reasons. The first is that the good general did not invent a digital equipment widget, he merely provided the funding, and secondly digital equipment was a new technology about ready to break on the scene. It was a forerunner of the incredible digital, electronic, …

Raising Money – Venture Capital vs Angel Investment
21 Feb

Raising Money – Venture Capital vs Angel Investment

When I was in my college days studying management education, I used to think that Angel Investors and Venture Capitalists are two different bit of jargon thrown at you at different times to mean the same thing. Now that I am a management graduate, I understand that I was naïve to think that as there are certain fundamental differences which I am about to explain in the passage below.

I am going to break it down to you with the help of the following 2 simple examples:

Angels Investment

Let’s say that your rich friend agrees to loan you an amount to help you get yourself a business up and running and you promise them that you will not only return them the amount back but you will pay them something more as a reward of their trust over you. If it fails then your friend loses money just as you lose your business. That the concept here.

1. Individual high net worth investors with personal net worth more than $ 1 million

2. They will generally put in their money when the idea has been converted to at least prototype or is in a beta phase

3. They generally agree to finance anywhere between $25,000 to $100,000

4. The due diligence done by angel investors can range from a basic background check to thorough research

5. They have higher risk as compared to VCs as there is a higher …