Chapter 9. Investing
Investing is the core of private equity business and the way to develop a business idea for the investor. When investing the venture capitalist:
- Acts within established time limits
- Acquires only minority interests to control the entrepreneurial risk
- Places emphasis on investment returns in terms of capital gain and goodwill; the participation in risk capital is only partially remunerated during the period of ownership from dividends or compensation for consulting.
- May supply some services that the closed-end funds cannot due to statute clauses.
There are two main areas of investing:
- Valuation and selection of opportunities and matching them with the appropriate investment vehicle
- Target company valuation, the ...
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