Abstract: Start-up companies often do not have access to sufficient capital, but, if they could obtain that capital, they may have the potential for good long-term growth. If a company is perceived as having such potential, investors can hope to obtain above-average returns by investing in such companies. Money provided by investors to start-up firms is called venture capital (VC). It discusses that wealthy investors, investment banks, and other financial institutions typically provide venture capital funding. VC investment can be very risky. Venture capitalists are experts who analyze a firm's prospects. The chapter presents a simple influence diagram based on their causal network that models the decision of whether to invest in a given firm. This simple influence diagram is for the purpose of providing an accessible introduction. It explains a detailed influence diagram obtained from their causal network.
Publication Year: 2007
Publication Date: 2007-01-01
Language: en
Type: book-chapter
Indexed In: ['crossref']
Access and Citation
Cited By Count: 1
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