venture capital

Question 1

definition for venture capital

Answer 1

external source of finance

• money invested into the business by business angels or investors in return for a share in the business

Question 2

point 1 pura is a new business, advice

Answer 2

• new business
• lacks experience
• may benefit from the device of debroah meadon = successful entrepreneurs
• can help find more retailers pura cosmetics can supply to
• as currently supplies to 30 small retailers + small quantities
• expertise advice may help expand pura more quickly than organic growth

Question 3

counterbalance for advice

Answer 3

• may be disagreements rose and venture capitalist
• on how the business is ran
• diluted ownership = control of business is now split

Question 4

point 2 struggle to find finance

Answer 4

• struggle to obtain finance from banks
• seen as high risk
• venture capitalists can provide huge sums of finance
• to an extent flexible in how its used
• don’t need to pay interest payments

Question 5

counterbalance for finance

Answer 5

• will have to give a share of the profits to the venture capitalist
• may reduce retained profits
• limit roses expansion plans

Question 6

conclusion

Answer 6

has already developed a business on her own
- finance business through retained profits