Explain The Methods Of Venture Capital Financing?

1.	Explain The Methods Of Venture Capital Financing?
Answer» Some Common Methods of Venture Capital Financing: Equity financing: The venture capital undertaking requires long-term funds but is unable to provide returns in initial stage so equity capital is the best option. Conditional LOAN: A conditional loan is repayable in the FORM of a royalty after the venture is ABLE to generate sales. No interest is paid on such loans. Income note: It is hybrid security; the entrepreneur has to PAY both interest and royalty on sales but at substantially low rates. Participating debenture: Such security carries charges in three phases - in the start-up PHASE, no interest is charged, next stage a low rate of interest up to a particular level of operation is charged, after that, high rate of interest is required to be paid. Some Common Methods of Venture Capital Financing:

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Some Common Methods of Venture Capital Financing:

Equity financing: The venture capital undertaking requires long-term funds but is unable to provide returns in initial stage so equity capital is the best option.
Conditional LOAN: A conditional loan is repayable in the FORM of a royalty after the venture is ABLE to generate sales. No interest is paid on such loans.
Income note: It is hybrid security; the entrepreneur has to PAY both interest and royalty on sales but at substantially low rates.
Participating debenture: Such security carries charges in three phases - in the start-up PHASE, no interest is charged, next stage a low rate of interest up to a particular level of operation is charged, after that, high rate of interest is required to be paid.

Some Common Methods of Venture Capital Financing:

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