answersLogoWhite

0

What is the importance of venture capital?

Updated: 8/17/2019
User Avatar

Wiki User

12y ago

Best Answer

Capitalism's goal is to make the most of the money invested. Vulture Capitalists take company's who's (since they are a person) who's parts are worth more than the whole and break the company and sell each part to maximize investmeny,

Another function is an undervalued company will be purchsdrd snd then make loans approaching the companies true value. This resulting in jobs being lost and the company collapsing. For example. Bain Capital bought a steel rod manufacturing company know for high quality steel and great prices. Bain capital borrowed heavily in the name of the corporation and rewarded themselves with $345 million abou6 months later massive layoffs, quality plunged and the company went bankrupt. Bain profitted by $345 million. A once viable comany hiring over 1000 with a great product, a great reputation and sucked out all the capital and leth it collapse under the massive debt, most of which was alottwBain Capital. Mitt Romney was CEO. The town was devasted,the pension fund was gutted. To this day people are still suffer. Thats the American dream Romney amassed some $250 million and hhas a $10 million trust fund dor his children.

**** Kansas City's GST Steel was a successful company that had been making steel rods for 105 years when Mitt Romney and his partners took control in 1993. They cut corners and extracted profit from the business at every turn, placing it deeply in debt. When the company eventually declared bankruptcy, workers were denied their full pensions and health insurance, and the federal government was forced to step in and bail out the pension fund

User Avatar

Wiki User

12y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is the importance of venture capital?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Importance of venture capital?

They have the ability to invest and support ventures that would otherwise not get funding


When was SEB Venture Capital created?

SEB Venture Capital was created in 1995.


When was Fenox Venture Capital created?

Fenox Venture Capital was created in 2011.


Is venture capital long or short term?

Venture capital is long term.


What is the population of SEB Venture Capital?

SEB Venture Capital's population is 21.


Concept and development of venture capital in India?

venture capital cocept and development in india


What the definition of venture capital and how is many types of venture capital?

Venture capital can be defined as capital invested in a new and often risky new business. The very name itself of "venture" indicates that the investment may be a true 'adventure" with a small chance of success, most of the time. It requires allot of research to use one's venture capital in a new risky project.


How can venture capital be invested?

Venture capital is invested in early-stage, high-risk startup companies.


What is the venture capital?

the venture capital formula is pxsxe p=problem s=solution e=talent


What has the author Russell M Knight written?

Russell M. Knight has written: 'The supply of venture capital in Canada' -- subject(s): Venture capital, Capital investments 'Venture capital in Canada: The user point of view' -- subject(s): Capital investments


Disadvantage of venture capital?

There may be several disadvantages of venture capital; however, a disadvantage to one entrepreneur may be an advantage to another entrepreneur. Focusing however on disadvantages of venture capital: (i) dilution of ownership, (ii) dilution in control, (iii) necessity of having representatives of the venture capital participate in corporate governance, (iv) increased risk of venture capital take over of the business.


Is venture an adjective an adverb or verb?

The word 'venture' is both a verb and a noun. Examples:Verb: My mom won't venture out at night.Noun: The venture did not look like a good investment.For terms like 'venture capital', the noun venture is forming a compound noun with capital, not as an adjective.