Venture Capital Investment Process

Venture capital investment process is different from normal project financing. In order to understand the venture capital investment process a review of the available literature on venture capital finance is carried out. Tyebjee and Bruno in 1984 gave a model of venture capital investment process which with some variations is commonly used presently.  As per this model this activity is a five step process as follows: Deal Organization Screening Evaluation or Due Diligence Deal Structuring Post Investment Activity and Exit Deal origination: In generating a deal flow, the VC investor creates a pipeline of deals or investment opportunities that he would consider for investing in. Deal may originate in various ways. referral system, active search system, and intermediaries. Referral system is an important source of deals. Deals may be referred to VCFs by their parent organisations, trade partners, industry associations, friends etc. Another deal flow is active search through networks, Continue reading

Role of Stock Markets in an Economy

Financial market is one of the components of financial system. Financial market facilitates the efficient allocation of financial resources of the economy so as to achieve socially desirable and economically productive purposes. Existence of an efficient financial market is a pre requisite for promoting savings, investments and consequent economic growth. Financial markets are extremely important to the general health of an economy. The main function of financial system, viz. capital formation takes place practically in financial markets. Financial institutions work as financial intermediaries and establish link between suppliers and users of funds in financial market. Financial products, including the supply of credit, mortgages, company shares and insurance, are bought and sold in primary and secondary financial markets. Financial products and securities are first issued into primary financial markets, which is where all financial products originate and where contracts are first drawn up. Secondary markets exist to enable buyers and sellers Continue reading

What Is a Chief Learning Officer (CLO)?

A Chief Learning Officer’s main job is to grow an organization by developing a process of learning. This role continues to change, morph, and evolve as things change such as the overall econonmy, increase in globalization, and growth of technology. This evolution requires organizations to learn faster or face the reality of not being able to survive. Companies that implement ongoing learning objectives are able to reinvent themselves and adapt to change proactively, while stagnant organizations are often reactive in strategy and are unable to catch up or adjust to the changing environment. Learning needs to happen quickly, affordable, and clearly in order for a company to get a competitive advantage over others. Companies need to be able to learn from success and failures in order to manage change and turn these oppurtunities into improvement. Some common themes of learning companies include knowledge or data being continuously transferred, stored, and Continue reading

Difference Between Money Market and Capital Market

In order to understand what the differences between things are you first need to understand what each of the items is. In this case before you can understand the difference between money market and capital market you are going to need to understand what money market is and what capital markets is. Once  you understand the two  items are it will  be easier to see what the difference or differences are between the two markets. What is Money Market? Basically the money market is the global financial market for short-term borrowing and lending and provides short term liquid funding for the global financial system. The average amount of time that companies borrow money in a money market is about thirteen months or lower. Some of the more common  types  of  things  used  in  the  money  market  are  certificates  of  deposits,  bankers’  acceptance,  repurchase  agreements and  commercial paper to name a Continue reading

Operations Management – Definition, Elements and Objectives

An operation may be defined as the process of changing inputs into outputs thereby adding value to some entity. Right quality, right quantity, right time and right price are the four basic requirements of the customers and as such they determine the extent of customer satisfaction.   And if these can be provided at a minimum cost, then the value of goods produced or services rendered increases. Operations management is concerned with managing the resources that directly produce the organisation service and products. The resources are generally consist of people, material, technology and information but may go wider than this. These resources are brought together by a series of processes so that they are utilized to deliver the primary service or product of the organization. Thus operation management is concerned with managing inputs (resources) through transformation processes to deliver outputs (service or products). The objectives of production management are “to Continue reading

Emotional Marketing

Emotional marketing is a highly successful method that is used by marketers to both attract and retain customers. The main aim of emotional marketing   is to connect to customers’ hearts. It is seen that emotional thoughts stimulate people’s minds faster than rational thoughts. Emotional marketing is all about considering the feelings and needs of customers and finding ways to take advantage of the same to achieve higher volumes of sales. Most marketers are now adopting emotional marketing technique because of the realization that the emotional route can be effectively used to change consumers’ attitude towards their products. Now-a-days companies are using emotional advertisements to evoke favorable reaction from consumers. Emotion based marketing offers competitive advantages to marketers in developing strong relationship with consumers. Many of the advertisements these days have a strong element of emotion touch to them, which draws consumers to connect with the brands being advertised. For Continue reading