When can an entrepreneur seek venture capital financing?

1.	When can an entrepreneur seek venture capital financing?
Answer» An entrepreneur seeks venture capital financing under following circumstances: 1. High risk: Ventures which involve high risk due to various reasons like technological, creativity and innovation, etc. are subjected to high risk related to returns. Here the venture capitalist comes forward. 2. Seed funding: Seed money, is a form of securities offering in which an venture investor purchases part of a business. Interest of the venture capitalist for purchase of security is also a reason. 3. Expansion: If the entrepreneur wants to expand then he goes for venture capital. 4. Business skills: Lack of business skills also forces the entrepreneur to go for venture capital.

Answer»

An entrepreneur seeks venture capital financing under following circumstances:

1. High risk: Ventures which involve high risk due to various reasons like technological, creativity and innovation, etc. are subjected to high risk related to returns. Here the venture capitalist comes forward.

2. Seed funding: Seed money, is a form of securities offering in which an venture investor purchases part of a business. Interest of the venture capitalist for purchase of security is also a reason.

3. Expansion: If the entrepreneur wants to expand then he goes for venture capital.

4. Business skills: Lack of business skills also forces the entrepreneur to go for venture capital.

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