Venture Capital Financing and its process
Investorline Venture capital financing is a type of financing by venture capitalist: the type of private equity capital is provided as seed funding to early-stage, high-potential, growth companies and more often…
Compensation for Venture Capitalist
Venture capitalists are compensated through a combination of management fees and carried interest (often referred to as a "two and 20" arrangement): Management fees – an annual payment made by…
Venture capital firms and funds
Venture capitalists A venture capitalist (also known as a VC) is a person or investment firm that makes venture investments, and these venture capitalists are expected to bring managerial and…
What is Venture capital?
Venture capital (VC) is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in,…
What is Leveraged buyout?
Leveraged buyout, LBO or Buyout refers to a strategy of making equity investments as part of a transaction in which a company, business unit or business assets is acquired from…
What is Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange. Private equity investments are primarily made…
What is Book value?
The book value of equity will change in the case of the following events: Changes in the firm’s assets relative to its liabilities. For example, a profitable firm receives more…
Asymmetric Information
The situation where one party in a bargain has information which is superior to that of the other. In economics and contract theory, information asymmetry deals with the study of…
Automatic stabilizer
In macroeconomics automatic stabilisers work as a tool to dampen fluctuations in real GDP without any explicit policy action by the government. It is a government program that changes automatically…
A Ton of Money
A Ton of Money is a slang buzzword which describes a lot of money. In fact, the lot of money is a relative term and depends in the context and…