Why do venture capi
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작성자 ScottArepe 작성일24-09-09 23:29 조회3회 댓글0건관련링크
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But angels and venture capitalists (VCs) are taking on serious risk. New ventures frequently have little to no sales; the founders may have only the faintest real-life management experience, and the business plan may be based on nothing more than a concept or a simple prototype. There are plenty of good reasons why VCs are tight with their investment dollars.
Pre-Seed Funding : This is the initial stage of investment, typically involving a small amount of capital provided by the founders themselves, friends, or family to help bring the new business idea to life. It usually covers early expenses such as market research, product development, and setting up the company.
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One of the primary goals of research in developing an investment thesis is to assess the risk/reward profile of a potential investment. This involves evaluating the potential risks associated with the investment and weighing them against the expected returns. A sound investment thesis should demonstrate a clear understanding of these risks and offer a rationale for why the investment’s potential returns make it a worthwhile addition to a portfolio.
The truth is, very few investors have highly specific theses they focus on, and even fewer target extremely niche industries.