people have all sorts of strange things entrepreneurial reasons, there are a variety of power, but as a successful and mature investors, venture investment company for only one reason: asset liquidation.
The good news:
for the majority of entrepreneurs, entrepreneurship is not a job but a occupation.
but the venture first need is the product development funds needed, then the valuation of the funds needed. Traditional lending institutions (banks) believe that the risk of start-up companies for traditional bank loans too high. Fortunately, 20 after the century; 25 years appeared in a called "venture fund" emerging funding sources. The return on investment from the venture capital is not interest, but the equity of the start-up company.
The bad news:
Although the power from the
we to quickly calculate: if a VC 10 start-ups, on average, 5 enterprises will fail, 3 enterprises will generate investment income, in addition to 1 2 or will be "winner", become the main source of income risk fund. The risk fund has the least "considerable" the yield is 20% per year, so the of the year of the year of the the risk fund’s earnings are about six times the amount of investment (6x). This means that the two successful investment gains of up to 30 recommended