Event Online Global FinTech Fest 2020 

 28 days ago
 Source: inc42.com

How VC Works – A Beginner’s Guide

Quick Summary

The company went public 3 years later and Arthur would get back $8.2 Mn – a 130% return or 33% annual return. It’s this focus on early-stage companies (more risk) that puts the ‘venture’ in VC. But VC = money + advice on how to build businesses which is more useful to entrepreneurs. They are ready to invest in a VC fund because of the high returns expected from it compared to other options they have (public equity markets, debt, real estate, etc). A failure to hit this rate means the fund has failed (and a lot of VC funds fail).

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