scholarly journals Venture Capital Best Practice Strategies To Reduce Economic Uncertainty In Biofuel Investing

2014 ◽  
Vol 3 (1) ◽  
pp. 25-30
Author(s):  
David A. Blum
Keyword(s):  
Venture Capital ◽  
Best Practice ◽  
Net Present Value ◽  
Primary Source ◽  
The United States ◽  
Internal Rate Of Return ◽  
Economic Uncertainty ◽  
Renewable Fuel ◽  
Start Up ◽  
Venture Capital Firms

Independent venture capital firms require actionable economic best practice strategies to reduce uncertainty when investing in biofuel firms. Biofuels derived from plant oils are a primary source of renewable fuel energy replacing petrol diesel. Investing in biofuels is fraught with high capital start-up costs and inaccurate portfolio firm valuation models lessening venture capital personnel ability to achieve higher levels of successful biofuel firm exits. The gap in literature addressed in this paper is venture capital best practice strategies to reduce economic uncertainty in biofuel firms investing are an unexplored phenomenon. Reducing and prospering from the effects economic uncertainty requires venture capital firms to implement best practice strategies. This paper provides venture capital firms with best practice strategies to reduce economic uncertainty when in investing in biofuel firms. Utilizing multiples, net present value, internal rate of return, and venture capital model for establishing a valuation price for portfolio firms are actionable economic best practice strategies addressed in this paper. The best practice strategies presented in this paper might reduce economic uncertainty, increase the number of successful exists, and encourage increased funding of biofuel energy firms, contributing to cleaner and healthier communities throughout the United States.

scholarly journals Private equity and venture capital in South Africa: A comparison of project financing decisions

2013 ◽  
Vol 16 (3) ◽  
pp. 258-278 ◽  
Author(s):  
David Portmann ◽  
Chipo Mlambo
Keyword(s):  
South Africa ◽  
Venture Capital ◽  
Private Equity ◽  
Venture Capitalists ◽  
Project Financing ◽  
Financing Decisions ◽  
Start Up ◽  
Risk Appetite ◽  
Investment Opportunities ◽  
Venture Capital Firms

This paper investigates the manner in which private equity and venture capital firms in South Africa assess investment opportunities. The analysis was facilitated using a survey containing both Likert-scale and open-ended questions. The key findings show that both private equity and venture capital firms rate the entrepreneur or management team higher than any other criterion or consideration. Private equity firms, however, emphasise financial criteria more than venture capitalists do. There is also an observable shift in the investment activities away from start-up funding, towards later-stage deals. Risk appetite has also declined post the financial crisis.

Problems and Prospects of Development of Venture Capital Institutions in Russia

2021 ◽  
pp. 81-103
Author(s):  
S. S. Glaziev
Keyword(s):  
Venture Capital ◽  
The United States ◽  
Economic Life ◽  
High Tech ◽  
Investment Environment ◽  
Start Up ◽  
Innovative Products ◽  
History Of ◽  
New Ideas ◽  
National Economies

The relevance of the topic of the article is directly due to the increased interest on the part of government agencies, business circles and the scientific and economic community to the problem of stimulating the processes of creation, replication and economic promotion of innovations, and ultimately-the growing objective need of the national economy in a favorable innovation environment. Venture capital plays a role in maintaining the flow of innovative products in the economies of a number of countries around the world. However, venture capital is still not a well — established phenomenon in most national economies, if we consider this phenomenon as a system that is essential for the search and introduction of new ideas and technologies into socio-economic life, and not as scattered precedents for financing young high-risk, but fast-growing and promising innovative companies. Based on these fundamental provisions, the author of the article, first, describes in detail the subject structure of this system, characterizes the interaction between special funds, start-up companies and their final investors-large high-tech industrial corporations, which in many cases forms the innovative mechanism of venture capital. Secondly, it examines the factors, the history of the formation of venture capital, shows its national specifics, place and functions in specific countries of the modern market-capitalist economy, including the United States, the EU states and Japan. Third, it assesses the Russian innovation and investment environment, the possible role in them and the prospects for the development of venture capital institutions in Russia.

scholarly journals Estimated Cost of Production for Medical Cannabis (Cannabis sativa L.) in Greece

2020 ◽  
Vol 77 (1) ◽  
pp. 33
Author(s):  
Chariklia CHATZIGIANNI ◽  
Ioannis ROUSSIS ◽  
Christos T. PAPADAS ◽  
Stella KARIDOGIANNI ◽  
Varvara KOUNELI ◽  
...  
Keyword(s):  
Net Present Value ◽  
Cannabis Sativa ◽  
Public Awareness ◽  
First Year ◽  
Internal Rate Of Return ◽  
Medical Cannabis ◽  
Present Value ◽  
A Value ◽  
Start Up ◽  
Net Profit

In recent years, cannabis has raised public awareness in many countries worldwide about its medical uses. The European cannabis market reached its peak during 2018 with investments of 500 million €. Greece introduced Law 4523/2018, which regulates the production and processing of medical cannabis. A start-up business plan was drawn up for a medical cannabis operation owned a 1 ha greenhouse to estimate the start-up costs and the costs of cultivating and processing medical cannabis under greenhouse conditions in Greece. The results of the present study revealed that the investment was estimated at 4,960,044 €. Net profit in the first year amounted to 3,584,621.70 €, while the annual net profits from the second to the tenth year amounted to approximately 7.07 billion. The Net Present Value with a value of 45,425,241.24 € is positive and the internal rate of return (IRR) is 94.14%, which means that the investment can be characterized as profitable.

Patterns of Preference for Venture Capital Investment in the United States of America, 1970–85

1989 ◽  
Vol 7 (2) ◽  
pp. 205-222 ◽  
Author(s):  
M B Green
Keyword(s):  
Venture Capital ◽  
Capital Investment ◽  
Local Development ◽  
The United States ◽  
Venture Capital Investment ◽  
Median Polish ◽  
Venture Capital Firms ◽  
High Level ◽  
Industry Choice ◽  
Privately Owned

In this paper a model of the spatial development of the American venture capital industry is provided. The investment preferences for both publicly and privately owned venture capital firms for the period 1970–85 are examined in light of this model. A median polish analysis of the investment preferences, for firms located in the sixteen largest venture capital centers, reveals a high level of regional parochialism in investment. Differences in risk aversion and industry choice are also found both by city type and by firm type. Implications for local development are discussed.

scholarly journals Venture Capital Booms and Start-Up Financing

2021 ◽  
Vol 13 (1) ◽  
pp. 111-127
Author(s):  
William H. Janeway ◽  
Ramana Nanda ◽  
Matthew Rhodes-Kropf
Keyword(s):  
Venture Capital ◽  
Information And Communication Technologies ◽  
Communication Technologies ◽  
The United States ◽  
Role Of Government ◽  
Real Effects ◽  
Start Up ◽  
Asset Class ◽  
Information And Communication ◽  
Start Ups

We review the growing literature on the relationship between venture capital (VC) booms and start-up financing, focusing on three broad areas. First, we discuss the drivers of large inflows into the VC asset class, particularly in recent years, which are related to but also distinct from macroeconomic business cycles and stock market fluctuations. Second, we review the emerging literature on the real effects of VC financing booms. A particular focus of this work is to highlight the potential impact that booms (and busts) can have on the types of firms that VC investors choose to fund and the terms at which they are funded, independent of investment opportunities—thereby shaping the trajectory of innovation being conducted by start-ups. Third, an important insight from recent research is that booms in VC financing are not just a temporal phenomenon but can also be seen in terms of the concentration of VC investment in certain industries and geographies. We also review the role of government policy, exploring the degree to which it can explain the concentration of VC funding in the United States over the past 40 years in just two broad areas—information and communication technologies and biotechnology. We conclude by highlighting promising areas of further research.

Urban Start-up Districts: Mapping Venture Capital and Start-up Activity Across ZIP Codes

2018 ◽  
Vol 32 (2) ◽  
pp. 99-118 ◽  
Author(s):  
Richard Florida ◽  
Karen M. King
Keyword(s):  
Venture Capital ◽  
Capital Investment ◽  
The United States ◽  
Urban Neighborhoods ◽  
High Tech ◽  
Urban Theory ◽  
Venture Capital Investment ◽  
Technology Industry ◽  
Start Up ◽  
Start Ups

Previous research has identified the clustering of high-tech industries, entrepreneurial start-ups, and venture capital across metropolitan areas. Using detailed ZIP code data on start-up activity and venture capital investment, this research tests three hypotheses informed by urban theory on the clustering of innovation, entrepreneurship, and high-technology industry: (1) that start-up activity and venture capital investment will concentrate in distinct microclusters within metro areas, (2) that a substantial level of start-up activity and venture capital investment will cluster in dense urban neighborhoods or ZIP codes, and (3) that the clustering of start-ups and venture capital investment will vary by industry or type of technology. The authors find evidence to support all three. Start-up activity and venture capital investment are concentrated in a relatively small number of ZIP codes in the United States, the majority of which are in dense urban neighborhoods, and this clustering varies by industry and type of technology.

Coordination Frictions in Venture Capital Syndicates

2019 ◽  
pp. 351-371
Author(s):  
Ramana Nanda ◽  
Matthew Rhodes-Kropf
Keyword(s):  
Asymmetric Information ◽  
Venture Capital ◽  
Cash Flow ◽  
Agency Problems ◽  
Future Research ◽  
Extensive Literature ◽  
Start Up ◽  
Venture Capital Firms ◽  
Cash Flow Rights

An extensive literature on venture capital has studied asymmetric information and agency problems between investors and entrepreneurs, examining how separating entrepreneurs from the investor can create frictions that might inhibit the funding of good projects. It has largely abstracted away from the fact that a start-up typically does not have just one investor, but several venture capital investors that come together in a syndicate to finance a venture. This chapter therefore argues for an expansion of the standard perspective to also include frictions within venture capital syndicates. Put differently, what are the frictions that arise from the fact that there is not just one investor for each venture, but several investors with different incentives, objectives, and cash flow rights who nevertheless need to collaborate to help make the venture a success? The chapter outlines the ways in which these coordination frictions manifest themselves, describes the underlying drivers, and documents several contractual solutions used by venture capital firms to mitigate their effects. The chapter’s broader perspective provides several promising avenues for future research.

Business: The Electronic Health Record: Front Line Experience

2011 ◽  
Vol 21 (1) ◽  
pp. 18-22
Author(s):  
Rosemary Griffin
Keyword(s):  
Health Care ◽  
Information Technology ◽  
Electronic Health Record ◽  
Financial Incentives ◽  
Best Practice ◽  
Health Care Systems ◽  
The United States ◽  
Health Record ◽  
Health Trends ◽  
Electronic Health

National legislation is in place to facilitate reform of the United States health care industry. The Health Care Information Technology and Clinical Health Act (HITECH) offers financial incentives to hospitals, physicians, and individual providers to establish an electronic health record that ultimately will link with the health information technology of other health care systems and providers. The information collected will facilitate patient safety, promote best practice, and track health trends such as smoking and childhood obesity.

ANALISIS KELAYAKAN FINANSIAL INDUSTRI PENGOLAHAN KECAP ANEKA GUNA DI KOTA LANGSA

2017 ◽  
Vol 2 (1) ◽  
pp. 21-30
Author(s):  
Muhammad Jamil ◽  
Januari Frizki Bella
Keyword(s):  
Net Present Value ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Internal Rate

Adapun tujuan dari Penelitian ini adalah untuk mengetahui kelayakan usaha industri pengolahan kecap Aneka Guna apabila dilihat dari segi kelayakan finansial. Penelitian ini menggunakan metode studi kasus. Lokasi penelitian yaitu di Kota Langsa dengan pertimbangan bahwa lokasi tersebut merupakan daerah yang terdapat industri pengolahan kecap asin dan mudah di jangkau oleh penulis. Waktu penelitian dilaksanakan pada Bulan Juni - Oktober 2014. Tenaga kerja yang digunakan berjumlah 27 orang, 20 tenaga kerja pria dan 7 orang tenaga kerja wanita. Jumlah penggunaan tenaga kerja selama 5 tahun sebesar 3759 HKP. Total biaya produksi yang dikeluarkan oleh pengusaha dalam usaha pembuatan kecap didaerah penelitian selama 5 tahun adalah Rp. 2.076.988.000,-. Pendapatan kotor yang diperoleh pengusaha sebesar Rp. 8.199.690.000,- dan pendapan bersih yang diperoleh sebesar Rp. 6.122.702.000,-                 Kota Langsa hanya memiliki 1 pengusaha pengolahan kecap asin dan dijadikan sebagai pengusaha sampel yaitu usaha industri pengolahan kecap asin Aneka Guna. Hasil perhitungan di peroleh Net Present Value (NPV) sebesar Rp. 263.281.290 (lebih besar dari nol), sedangkan Internal Rate of Return (IRR) sebesar 84% lebih besar dari tingkat bunga yang berlaku (D.F. = 18%), sedangkan Net B/C Ratio sebesar 3,27 (lebih dari pada 1) dan Pay Back Priod (PBP) 1 Tahun 6 Bulan (lebih kecil dari umur ekonomis).  

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