Question

1) What is a VC and what is their role?

2) What are expectations of investors? What do they expect to earn?

Answer 1

1. Venture Capital (VC)

This is the type of capital fund given by the organization as financial support to small and new companies in the market which have a good and strong profitable market in the near future. By this financial support technically the larger organizations get some percent of ownership of the organizations and if the small business starts giving high-profit return it will be very beneficial for the organization.

Now let us discuss the role of Venture Capital (VC)

• The main and basic role of venture capital is to encourage and help the small scale industry to run in the market with their new ideas and innovations which generally gets affected due to the lack of financial support.
• With the help of venture capital, the larger organizations will get a chance to get the ownership of the new companies which have a higher potential of growth in the near future and they will get new organization fully settled for a very low cost.
• Ventures capital helps the owner of the small industry or any organization to create new innovation and ideas which will gradually improve the performance of the organization and will be beneficial for both the organizations.

2. The most common and important expectation that all the investors have in their mind while investing in any organization is to get good returns and achieve their financial goals. They also expect the organizations to be ethical and well managed so that will create a goodwill in the investor community that they have invested in a well managed and well-organized organization.