Venture capital needs to be closely watched at all stages of operation. It’s supposed to be self-supporting, and its effectiveness or otherwise is a good measure of how the venture is doing. A lot of people take out fast loans to get a venture moving quickly, and it’s a good idea to use these loans wisely. Venture capital can make a lot of money in a hurry, used properly, but it can create long term problems if you’re not careful.
Venture capital basics
The strictly correct way of managing venture capital is on a business plan basis. Venture capital management is supposed to be structured, with the money organised to cover all contingencies, operational issues, and with some reserve to back up the venture.
The fundamental issues with venture capital are:
- Set-up costs- Assets, etc.
- Operational/Admin costs
