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From Wikichords
Venture Capital
Venture capital represents monetary investment inside a very risky proposition in the hope of earning a high rate of return. When the idea of venture capital is possibly as old as the human race, the practice of venture capitalism has remained somewhat fragmented and individualized through its lengthy history. Only within the last 4 decades or so has the field of venture capital acquired a particular coalescence, maturity and sophistication, especially in the US.
The origin of venture capital in its modern day kind may be traced to Basic Doriot, who established the American Investigation and Improvement Fund in the Massachusetts Institute of Technologies in 1946, to finance the commercial exploitation of new technologies created in US universities. The modest organization act with the US permitted the Smaller Company Administration to license as well as assistance financially little company investment businesses engaged in venture capital finance, provided fuel towards the development of venture capital finance.
Bigger businesses within the US like Xerox, 3M and General Electric entered the field with their venture capital divisions. These examples from the US stimulated the development of venture capital throughout the world. Even though the initial efforts made inside the early seventies to introduce venture capital had been rather unsuccessful, the changed atmosphere on the eighties witnessed a phenomenal growth of hi-tech industries and offered a fertile ground for the blossoming of venture capital.
Venture capital plays a assisting hand inside the financing of startup and early stage firms, as well as firms in ""turn around"" conditions. Firms raise funds from different sources. Some funds like share capital are kept permanently in the company. Some funds like debentures are kept for extended periods; when some funds are kept for short periods. The entire composition of these funds in an organization is generally termed a monetary structure. Normally, the short-term funds are excluded considering that they are shifting usually and the composition of long-term funds is known as capital structure.
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