Identifying The Role Of Venture Capitalists Essay

Question:

Discuss about the Identifying The Role Of Venture Capitalists.

Answer:

Introduction

The following report is based on identifying the role of venture capitalists while starting a new start up business. The report has helped the readers to gain knowledge on the opportunities and the differences that the venture capitalist faces while starting the business.

Evaluation of Similarities

After completing a thorough analysis of the whole project it was seen that the main leaders of the company like Robert Simon, Director of Alta Partners, Fred Wang, General Partner of Trinity Ventures and Russell Siegelman: Partner of KPCB group all agree on one similar terms. All of them believe that market is the key requirement for the success of any business. Presence of a large market or an established market helps in the growth of the business and it is believed that markets are the main elements that help to attract people as well as technology in the business (Park et al.).

Evaluation of Differences

The Venture capitalists differs in their views while conducting the business. Every investor has a different viewpoint. Some of them are:

  1. Some of the venture capitalists believes in teamwork and supposes that teamwork leads to the success of the business.
  2. Some of the venture capitalists totally depend on the creation of new business models that helps to evaluate the best marketing strategies and implement them in the market (Khanin, Dmitry and Ofir).
  3. There are many investors in the market who believes that investing in the right sector is hugely profitable in spite of having a mediocre team at disposal.
  4. There are many capitalists who on the other hand perform a thorough analysis of the market by talking to both the present as well as the potential customers of the organization to gain an idea of customer pain and the product utility.

References

Khanin, Dmitry, and Ofir Turel. "Conflicts and regrets in the venture capitalist–Entrepreneur relationship." Journal of Small Business Management 53.4 (2015): 949-969.

Park, Sarah, Joseph A. LiPuma, and Christiane Prange. "Venture capitalist and entrepreneur knowledge of new venture internationalization: A review of knowledge components." International Small Business Journal 33.8 (2015): 901-928.

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