Summary of Darek Klonowski's Venture Capital Redefined

By IRB Media

Please note: This is a companion version & not the original book.

Book Preview: #1 Venture capital is a global phenomenon that simultaneously maintains strong local characteristics. It is influenced by global capital flows and trade, socioeconomic conditions, and the political environment.

#2 Venture capital is the provision of capital, know-how, and hands-on involvement to entrepreneurial firms by institutional investors. It is used to accelerate entrepreneurial development and exploit opportunities in the marketplace.

#3 There are several forms of venture capital that are offered to firms at different stages of development. Second stage financing is available to firms that are experiencing robust revenue growth and may even be profitable. Bridge financing is offered to entrepreneurial firms that intend to go public.

#4 Venture capital is the act of investing into private firms, and it is part of a broader category of closed-end private capital. There are five different and distinct categories of private capital: private equity, private debt, real estate, infrastructure, and natural resource.

• Language: English
• Publisher: IRB Media
• Release date: Feb 16, 2022
• ISBN: 9781669347040

IRB Media

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Insights on Darek Klonowski's Venture Capital Redefined

Contents

Insights from Chapter 1

Insights from Chapter 2

Insights from Chapter 3

Insights from Chapter 4

Insights from Chapter 5

Insights from Chapter 1

#1

Venture capital is a global phenomenon that simultaneously maintains strong local characteristics. It is influenced by global capital flows and trade, socioeconomic conditions, and the political environment.

#2

Venture capital is the provision of capital, know-how, and hands-on involvement to entrepreneurial firms by institutional investors. It is used to accelerate entrepreneurial development and exploit opportunities in the marketplace.

#3

There are several forms of venture capital that are offered to firms at different stages of development. Second stage financing is available to firms that are experiencing robust revenue growth and may even be profitable. Bridge financing is offered to entrepreneurial firms that intend to go public.

#4

Venture capital is the act of investing into private firms, and it is part of a broader category of closed-end private capital. There are five different and distinct categories of private capital: private equity, private debt, real estate, infrastructure, and natural resource.

#5

Venture capitalists do not manage their own capital. They are commonly structured in the form of limited partnerships, and in such legal structures, there are two classes of partners: general and limited. Limited partners (LPs) normally contribute capital but take no part in the daily operations of the partnership; in other words, they are passive investors. General partners (GPs), on the other hand, are responsible for the day-to-day management of the partnership and are active investors.

#6

Venture capital is equity oriented, and it provides equity rather than debt. It is selective in its choice of investee firms, and it invests in one or two out of every one hundred business plans it reviews.

#7

Venture capital activism, which involves strategic considerations, revisions to the original business plan, the recruitment of senior management, the execution of business acquisitions, and the raising of external finance, may improve an entrepreneurial firm’s efficiency.

#8

While many people believe that venture capital contributes to entrepreneurial and national innovation, there is debate whether venture capitalists actually cause innovation in the firms they finance.

#9

Venture capital’s focus on short-term profits and its desire to reduce expenses and capital expenditures associated with innovation often results in less investment in long-term RD, innovation, and commercialization.

#10

Due to its prevalence in popular media, it is important to include a brief section about the inclusion of venture capital in popular media and how it is perceived by the general public. Primarily, venture capital and its investments in entrepreneurial firms are mythologized by mainstream media.

#11

Venture capital is permanent capital that does not require repayment. It is available to