Dominic D. Magtibay BAFM6102 2022-0067283 Activity 3 Research, read and understand at least one additional source of finance which was not included in the discussion in module 3. Explain that source of finance in your own words. Please cite your source/s. Answer: Venture Capital In sourcing finance in the modern world, Venture Capital stands out as a potent catalyst, driving the growth trajectory of startups and small enterprises. This private equity investment model offers financial support alongside expert guidance, creating a holistic environment for growth. Venture Capital transactions occur through independent limited partnerships set up by dedicated venture capital firms. Unlike conventional private equity, which typically supports established entities, Venture Capital focuses on injecting initial funds into emergent ventures seeking primary investments. VC holds a strong appeal for investors due to its potential for high returns, even amid inherent risks. For new ventures with limited access to traditional funding avenues, Venture Capital serves as a crucial lifeline. However, this partnership requires a balance between financial gains for investors and a partial ownership, leading to shared decision-making. In conclusion, Venture Capital serves as a transformative force propelling the growth of startups and small businesses. Its fusion of financial investment and expert guidance creates a symbiotic relationship that propels business success. Understanding the nuances of VC is essential for all stakeholders in the business. Reference: Investopedia. (n.d.). Venture Capital (VC). Retrieved from https://www.investopedia.com/terms/v/venturecapital.asp
