What are the Disadvantages of Venture Capital?

[Suba]

Venture capital is an institution that provides funding (capital) in the form of investment, to small and medium businesses so they can develop and startup businesses that have great potential to make profits in the long term. Meanwhile, the source of venture capital funds comes from investors or limited partners, whether banks or other financial institutions. In general, venture capital parties are very careful and carefully evaluate startup businesses before providing funds. They also have to analyze development prospects and monitor business performance. Venture capital will also adjust to the investment portfolio. because if the business can make a profit, the VC will also get a share of that profit.

 

[Augusta]

They evaluate startup businesses before providing funds. They also have to analyze development prospects and monitor business performance as they get involved

 

[eLdavis]

I think one of the major challenges that comes with it is the pressure to achieve rapid growth in your business.

 

[King Belieal]

Venture capital is a good way to raise money for your business. But there is much pressure on the entrepreneur to turn in a profit quickly for the venture capitalists.