Question

From the Headlines—Tabula: Describe the role venture capitalists played in the founding and expansion of Tabula. Comment on possible reasons for the involvement of multiple VC firms.

Answer 1

Professional Venture Capitalists:

Intermediaries in the venture investment sector who raise capital from investors and invest the respective capital in a portfolio of risky ventures are called professional venture capitalist. In simple words the investors who provide the capital to start a new venture or small business that wants to expand.

 

Role and involvement of multiple venture capitalist in starting and expanding company T:

Company T was started with venture capital and it has finished number of venture capital backed investment rounds in order to support its development and expansion. The purpose of multiple venture capital has emanated from the diversified motives of the investors, an aspiration to involve the resources that are available from the multiple Venture capital firm, restrictions on the capabilities of early stage investors of venture capital to finance a long development cycle prior to revenue and profit, and other things. Thus, the above data reflects the role and involvement of the multiple venture capitalist in starting and expanding the company T.