Venture Capital for financing
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If my e-commerce site is successful in the first year and I would like for additional financing to expand, would venture capital be a good financing source for a small e-business?
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Solution Summary
This solution discusses the concept of venture capital as a good financing source, and discusses its advantages and disadvantages for a small e-business.
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As per investopedia, venture capital is "Money provided by investors to startup firms and small businesses with perceived long-term growth potential. This is a very important source of funding for startups that do not have access to capital markets. It typically entails high risk for the investor, but it has the potential for above-average returns." Venture capital is mainly in form of equity. The term equity refers to the investment done by the shareholders in the ...
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