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Portfolio Diversification and Firm Investment

The influence of portfolio diversification of the controlling owners on firm investment is discussed. It is found that firms with high information asymmetry and low-growth rates are more likely to receive external financing than firms with lower information asymmetry. However, the relationship between financial leverage and firm investment is not significant for high-growth firms. These […]

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Funding & Investors

Often, small businesses require funding to grow. This capital can come from several different sources, including personal investors and banks. When seeking capital, you must have a solid business plan and understand the risks and rewards of your business. Ideally, you should also have an established team and a clear sense of how the company […]

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Funding & Investors

Funding & Investors The two main sources of funding for a small business are angel investors and loans. Angel investors, who can provide a high level of security and are willing to risk their money, are particularly attractive to entrepreneurs. However, angel investors do not lend money without collateral. In such a situation, an equity […]

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Firm Investment and External Sources of Funding

Firm Investment and External Sources of Funding External financing accounts for over 40% of firm investment, with 19 percent coming from commercial banks, three percent from development banks, and six percent from suppliers, equity investments, and leasing. Less than two per cent comes from informal sources. While these external sources may be important, they are […]

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Important Considerations When Raising Venture Capital

Important Considerations When Raising Venture Capital The primary objective of raising Venture Capital is to develop a new product or service. Typically, an entrepreneur needs to submit a detailed business plan, but investors also want to know what they are investing in. Potential investors will perform due diligence on your company, including an examination of […]

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Understanding the Risks and Rewards of Venture Capital

Understanding the Risks and Rewards of Venture Capital The VC industry involves investing money to help early stage businesses. The most common investment is Series A funding, and subsequent rounds of funding may follow. Later-stage companies may also issue additional rounds of funding, creating ideal market conditions for VC investors to exit. However, the high […]

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The Role of Risk in Firm Investment

The Role of Risk in Firm Investment The role of risk in Firm Investment is crucial for the long-term success of the business. In a global market, a large proportion of capital is required for firms to survive. A small amount of risk can be eliminated by diversifying the investment portfolio and taking risks with […]