There are not many opportunities for young fast growing companies. If they are too small to get listed on the stock exchange and has reached its borrowing limits from financial institutions, but the management/shareholders still see long growth opportunities, to find a venture capital provider can be the best solution.
For investors a venture capital investment is extremely risky and definitely not for the beginners, because such young companies don’t have enough track records to see how they will survive in the future, but the expected return also is high.
Investment psychology gains momentum in contemporary business world
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