Investing in the early stages of a company: Venture capital

Author(s):  
Stefano Caselli ◽  
Giulia Negri
Author(s):  
Sarit Markovich ◽  
Oded Golan ◽  
Charlotte Snyder

In March 2017, Oded Golan sat in his technology startup's conference room with his co-founder, pondering the fate of their company, Start A Fire. In just four years, the two entrepreneurs had taken an idea that started in Golan's apartment in Tel Aviv and turned it into a company that had raised $3.5 million in venture capital funding and served more than 3,000 of the world's biggest brands using an innovative content distribution and social media management platform that enabled brands to improve communication and engagement with their followers


2011 ◽  
Vol 9 (2) ◽  
pp. 189 ◽  
Author(s):  
Eduardo Madureira Rodrigues Siqueira ◽  
Antonio Gledson De Carvalho ◽  
Humberto Gallucci Netto

This paper investigates the determinants of performance of the investments of private equity and venture capital (PEVC) funds in Brazil. We use two unique databases: the First Brazilian Private Equity and Venture Capital Census and the Guia-GVcepe Endeavor, with information on this industry for the period 1999 to 2007. As measures of performance we use the percentage and number of exits through IPO, acquisition by a company or by another investor. Our results indicate that the factors influencing the performance of investments are: size of the fund, number of investments, the practice of co-investment, experience and foreign origin of the managing organization, focus on late stage, intensity of contact between managers and portfolio companies and the number of seats on the boards of the invested companies. The number of successes grows with the number of investments at a declining rate. This can indicate 1) a limit to the ability of managers or 2) that a large number of investments allows for greater diversification of risk, directing investments to companies of high risk but with a high upside.


Author(s):  
Jean-Pierre Jeannet ◽  
Thierry Volery ◽  
Heiko Bergmann ◽  
Cornelia Amstutz

AbstractThis chapter details how ownership structures evolved, starting from the early stages of a company to unfolding over time as ownership invariably passed on from one generation to another. Examples are offered on how and under what circumstances companies go public and how founders recruit new owners when ready to pass on the company. Specifically covered are single ownership and family ownership. To provide ownership stability and ownership control, the text describes efforts to keep control within the founding family, ways of passing ownership on to another family, and the process of shareholder agreements. Examples are provided on how companies recruit new owners and how companies approach the decision to go public vs. remaining privately owned.


2012 ◽  
Vol 18 (3) ◽  
Author(s):  
G. Steven Burrill

We are in the midst of dramatic changes in the way life sciences companies are funded. The model of funding a company with venture capital leading to an IPO is now the exception rather than the rule for life sciences companies. Venture investors are no longer willing or able to fund companies with an indefinite exit. Instead, they are waiting later to fund companies, building exits into their investments from the start, and looking to innovative technologies other than therapeutics that can address medical and healthcare system needs, but provide a more predictable path to revenue. The financial pressures of today are leading to creative efforts to forge new business and financing models. They are driving capital efficiency and putting a proper emphasis on value creation. The resulting discipline is welcome. The result is that companies that fail to pursue true innovation and products that create value will find funding difficult to obtain and markets unwilling to pay premiums. For those of us who invest in the sector, the good news is that valuations are historically attractive and power at the negotiating table lies with those who have capital. The opportunities before us have never been greater.


2017 ◽  
Vol 22 (6) ◽  
pp. 29-40
Author(s):  
Katarzyna Sieradzka

Financing of innovative business activities at early stages of their development is an extremely important condition of their growth. Start-ups, facing limited access to the formal capital market, look for an alternative. This is the informal market of capital investors, venture capital funds, and increasingly popular crowdfunding. It is the objective of this paper to analyse and evaluate sources of financing for innovative start-ups.


2010 ◽  
Vol 8 (1) ◽  
Author(s):  
M. Anaam Hashmi

<p class="MsoNormal" style="text-align: justify; line-height: normal; margin: 0in 0.5in 0pt; mso-pagination: none;"><span style="font-family: &quot;Times New Roman&quot;,&quot;serif&quot;; color: black; font-size: 10pt; mso-themecolor: text1;">Green financial markets are still in early stages of development. There are new green venture capital funds and green stocks to satisfy needs of project developers and investors. Various governments are also subsidizing new green ventures and project developers should take full advantage of these incentives. Also, there have been attempts to quantify riskiness of various green financial products so investors can make informed decisions.</span></p>


Author(s):  
Hugo Mitre-Hernandez ◽  
Carlos Lara-Alvarez ◽  
Mario Gonzalez-Salazar ◽  
Jezreel Mejia-Miranda ◽  
Diego Martin

The video game industry is becoming increasingly important due to its revenues and growing capabilities. User eXperience (UX) is an important factor which contributes to the acceptance of a video game. The UX is usually assessed at the end of the development process, and for this reason it is difficult to ensure an adequate level of interactive experience between computer game and players. Cancelation of projects or even bankruptcy of a company can be caused by bad management of UX. In this paper, we propose the game experience management (GEM), a method to evaluate, manage, measure and track the UX from early stages of computer game development. In order to compare the proposal against a method comprised by conventional approaches, teams of master degree students were formed for developing six tower defense games for teaching basic multiplication operations; surveys were conducted to compare the UX of games. In this setting, we find that games developed with GEM significantly improve UX by increasing the puppetry and consequently reducing player frustration.


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