Week 8 Question 1 Venture Capital Assignment Example | Topics and Well Written Essays - 250 words

Week 8 Question 1 Venture Capital - engagement ExampleThe company was making plans of launching new products and required a epoch-making amount of bullion and venture capital was the best option for the company (Metrick & Yasuda, 2010). The venture capitalists that funded the operations of the company were mainly from the written report of healthcare. Castlight Health Inc. stands to gain from the venture capital because it is yet to go public and at that time it would befuddle expanded its operations which translate to higher profits.Assess the challenges for origines using the resources of a venture capitalist, given that significant returns on the investment are likely to be impacted by the firm. Indicate how a business can manage these expectations. Provide support for your rationale.The main disadvantage of venture capital is that it requires a precise short time in generating cash. This puts a lot of financial pressure on the company and this whitethorn interfere with its daily operations. There is also the element of loss of control because the venture capitalist has do significant financial contributions in the operations of the company (Haislip, 2010). They venture capitalist may insist on appointing a representative on the management of the company. However, the business can manage the challenges by drafting an arrangement to a number of restrictions as part of the deal. This includes the amount of cash to be paid and the number of people to be involved in the management team (Gladstone & Gladstone,