The Formal and Informal Venture Capital Industry
This article examines the nature and activity of the formal and informal venture capital industry. Combined, there is a pool of nearly $100 billion in formal and informal venture capital in this country that is available for investment in emerging growth businesses. Although traditionally venture capital investments were targeted to early stage - and often "high tech" - companies, there has been a growing tendency on the part of venture capitalists to invest in "low tech," later stage businesses as well as in LBOs. This article also examines the criteria used by venture capitalists in making investment decisions.
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