Entrepreneurs and small and medium-sized enterprise (SME) managers capitalize their firms with debt equity investments, or a combination of both. Equity investments such as venture capital can erode executive control but can enable access to the investor's knowledge, advice, and networks. Venture capital can be provided by, independent venture capital firms (IVCs), corporations, or universities. The sources' differing investing objectives, backgrounds, and control mechanisms deliver varying levels of added value to the SME. Companies seeking venture capital should select investors whose objectives, potential to add value, and expectations of control mesh most closely with those of the entrepreneur.
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