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WHY do venture capital funds invest in businesses I just don't get this read below? |
Okay so say I have a business idea and I tell the VC and they give me ALL OR SOME OF THE MONEY to start the business and I STILL GET A LOT OF EQUITY IN IT. WHY wouldn't the venture capital fund just use that money since they have to pay most or all to open it themselves and then they would own it all think about it same amount of money with 100% equity why? The VC's are looking for firms with strong business plans and executives/staff with proven expertise or a lot of promise. They aren't investing in an idea. They're investing in a company, which includes people working to make it a success. The people's work and the VC's money both share in making it a success so they both share in the profit. because they are not smart enough to come up with new ideas for business. plus they may not know how to run the business. |
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