| Is the question of control a reasonable concern when | | | | An experienced venture capital investor will know |
| it comes to the participation of a venture capitalist? | | | | that the profitability of its investments is not |
| In fact, many owners are concerned about this topic | | | | guaranteed and that he or she should cover all bases |
| when considering venture capital investments. It is | | | | to be able to see better results. |
| only natural that a business owner will feel insecure | | | | And even if the venture capitalist would leave the |
| that the participation in venture capital will entitle it | | | | ship before it sinks, it is expected to sell its shares. |
| with more power. However, venture capitalists have | | | | But if the company is not doing well, it will find no |
| no interest in becoming managers. | | | | purchaser at the price originally expected. It is |
| The reason is the fact that most venture capital | | | | therefore obliged to wait for it to go better. |
| providors will invest in more than one company at a | | | | When the owner has enough funds, he or she can |
| time. Being a manager of all of them is an impossible | | | | opt to buy the shares from the investor. There is a |
| task. A venture capitalist will have some participation | | | | possibility that the prices of the shares have gone up |
| but its opinion is not heavier than that of the | | | | beyond what the owner can afford. |
| manager, though they have access to the company's | | | | Three options are available to the owner in that case: |
| financial documents. | | | | the stock exchange for larger businesses, the arrival |
| A venture capitalist has many investments and will | | | | of a new venture capitalist or the acquisition by |
| have participation in more than one company. It | | | | another group. In last two cases, the situation is not |
| should not be a matter of concern. Even though | | | | temporary and the company finally goes into outside |
| some companies may look more promising than | | | | hands. The sense of dispossession is total if the new |
| other, a venture capitalist prefers to hold profit from | | | | shareholder holds more than 50% of the capital. |
| all of them rather than just the most profitable one. | | | | |