Advantages & Disadvantages of Venture Capital

Advantages of Venture Capital

·      Venture Capital provides fund as well as  expertise to the company.

·      The enterprise may obtain large amount of equity finance.

·      The enterprise is not obligated to repay the fund.

·      The venture capital provides important information, resources, technical

·      assistance for the enterprises.

 




Disadvantages of Venture Capital

·      The founder may loose the control and autonomy because the investors

·      become part of the owners.

·      The finance through venture capital may be complex and lengthy.

·      This method of financing may be uncertain.

·       This method of financing may not be suitable for short-term.

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