Venture Capitalists

Paper Summary:

This paper presents an examination of venture capitalism. The writer explores the term, and what it means. The writer then examines several venture capitalist lives and finds out how they came to be venture capitalists and what they get out of venture capitalism as a profession.

Outline:
Introduction
The Bubble Has Burst
Deciding What to Invest In
The Goal of Venture Capitalists
What a Venture Capitalist Wants to Know
Venture Capitalist Philosophy
Success Story (Donald Trump)
Conclusion

From the Paper:

"In order for the venture capitalist to realize the rate of return of 58 percent per year, the business has to grow exponentially at rates required to provide a significant value.
The venture capitalist takes a risk, in that he or she generally invests in businesses that a bank or traditional financial institution would turn down, and then asks that the return be higher than a traditional institution would expect. If it works the venture capitalist makes a significant profit in a relatively short time period. If it fails the venture capitalist loses his or her investment, and the profits that money could have made had it been invested elsewhere during those years(Rosenfield, 2002). "

Sample of Sources Used:

• Donald Trump (accessed 2-18-07) http://www.askmen.com/men/business_politics/38b_donald_trump.html
• ProfNet Round-Up: Venture Capitalism. (2002) PR Newswire
• Rosenfeld, Jeff (2002) Why can't my banker be my venture capitalist and what can I do about it? How venture capitalists and commercial lenders approach investments. (Financing Franchising's Future). From: Franchising World
• Shepherd, Dean A. (1999) Venture capitalists' introspection: a comparison of "in use" and "espoused" decision policies. Journal of Small Business Management
• Markovitz, Leonard (1999) Uncivil Society, Capitalism and the State in Africa. The Journal of Commonwealth & Comparative Politics

More papers on Venture Capitalists:

• Essay # 85092 : "Venture Capital"
• Research Paper # 95338 : "Venture Capitalism"
• Essay # 116680 : "Venture Capital Financing"

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