Author Question: What types of businesses obtain venture capital financing? How does venture capital differ from a ... (Read 305 times)

MGLQZ · **on:** Jul 14, 2018

What types of businesses obtain venture capital financing? How does venture capital differ from a private placement?

Question 2

The concepts underlying Theory Z were first presented in the 1960 book, The Human Side of Enterprise.

Indicate whether the statement is true or false

brittiany.barnes · **Reply #1 on:** Jul 14, 2018

Answer to Question 1

Most venture capital firms do not invest in the typical small business. Instead, they invest in small (and sometimes struggling) firms that have the potential to become very successful and very profitable. Today, venture capital firms invest in companies that build the nation's infrastructure, develop computer software, or provide consumer information or social media services. Private placement, on the other hand, sells stock and other corporate securities directly to insurance companies, pension funds, or large institutional investors. When compared with selling stocks and other corporate securities to the public, there are fewer government regulations and the cost is generally less when securities are sold through a private placement.

Answer to Question 2

False