Venture Capital
Table of Content 1. Introduction……………………………………………………………………………………2 2.1 Venture capital and its role in the investment process………………………………2 2. Google Inc. development and role of venture capitalists in it………………………4 3.2 The history of the company………………………………………………………………4 3.3 Major investments and acquisitions……………………………………………………6 3.4 Role of Venture Capitalists in the lifecycle of the company………………………….9 3.5.1 Sequoia Capital as a major venture capital firm involved………………………9 3.5.2 You Tube Inc. acquisition and ensuing benefits………………………………10 3.5 Analysis of company’s financial performance and its future abilities………………13 3.6.3 Financial performance analysis since 2006………………………………….13 3.6.4 Threats and opportunities of the company……………………………………14 3. Conclusion………………………………………………………………………………….15 4. References………………………………………………………………………………….16
1. Introduction 2.1 Venture capital and its role in the investment process
Venture capital, called also as risk capital, is a capital invested in a project in which there is a substantial element of risk, especially money invested in a new venture or an expanding business in exchange for shares in business. It is normally invested in the equity of the company and it is not a loan (Butlers and Isaacs, 1997, p.310). Venture capitalists are intermediaries who take money from investors and make equity investments in portfolio companies (Metrick, 2007, p.3). Venture capital is a part of private equity. Its main goal is to get the financial return and exit further in the future. In other words, venture capital has its own logical process with the logical end. Metrick (2007, p.3) stated that venture capital has several main characteristics, which are: * Venture capital invests only in private companies; * Venture capital takes an active role in helping the companies with its portfolios; * Primary goal of venture capital
1. Introduction 2.1 Venture capital and its role in the investment process
Venture capital, called also as risk capital, is a capital invested in a project in which there is a substantial element of risk, especially money invested in a new venture or an expanding business in exchange for shares in business. It is normally invested in the equity of the company and it is not a loan (Butlers and Isaacs, 1997, p.310). Venture capitalists are intermediaries who take money from investors and make equity investments in portfolio companies (Metrick, 2007, p.3). Venture capital is a part of private equity. Its main goal is to get the financial return and exit further in the future. In other words, venture capital has its own logical process with the logical end. Metrick (2007, p.3) stated that venture capital has several main characteristics, which are: * Venture capital invests only in private companies; * Venture capital takes an active role in helping the companies with its portfolios; * Primary goal of venture capital
References: 6) Anon., 2006, CIBC World Market – Google Inc. Report, 9 October 7) Anon., n.d., Evolution CEO, Google History, [Online], Available at: http://www.evolution-seo.co.uk/history-of-google.html [Accessed on 29 April 2012] 14) Helmann T., Puri M., 2002, On the fundamental role of venture capital, Economic Review, n.d.