Abstract
This section introduces the rationale of VC financing and builda the theoretical basis for the following considerations. First, the necessity of VC funding for start-ups will be outlinsed by contrasting an emerging company’s need for capital with its limited access to traditional funding. Then, this chapter addresses the questions of how VC fills the financing gap of start-ups and what motives the different participants pursue with their engagement in VC. The VCF’s expectations towards venture investments are discussed in particular. This chapter concludes in distinguishing different types of VC investors.
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© 2006 Deutscher Universitäts-Verlag/GWV Fachverlage GmbH, Wiesbaden
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(2006). Venture Capital Investing. In: Venture Capitalists’ Exit Strategies under Information Asymmetry. DUV. https://doi.org/10.1007/978-3-8350-9018-7_2
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DOI: https://doi.org/10.1007/978-3-8350-9018-7_2
Publisher Name: DUV
Print ISBN: 978-3-8350-0126-8
Online ISBN: 978-3-8350-9018-7
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