Venture Capital And Due Diligence You Are Required To Write

Venture Capital and Due DiligenceNameInstitutionVenture Capital and Due DiligenceVenture Capital is the private investment given to startup companies inform of finances, managerial skill or even technical skills. These start-ups tend to have a higher risk but a higher growth potential. The investor in return is given a proportion of the startup’s equity (Zider, 1998). Venture capital is common with startups because it’s usually harder for them to raise the necessary capital through banks or even from public funding. In the past, private equity was mainly for rich individuals and families.Before the Second World War, venture capital in the US was mostly done by government and big corporations. Venture capital was put in the R&D costs for these large corporations, but the government in most cases avoided it all together. However, after the end of the world war organizations like the Rockefeller Brothers and company, J.H.Whitney and company and American Research and Development Corporation (ARDR) that were ready to venture into VC were formed. They demonstrated the importance of venture capital to the US government. ARDR was the first success story after investing in Digital Equipment Corporation (DEC) in 1957 and realizing a return on more