Business Finance Homework Help

Business Venture Capital Firms Discussion

 

I don’t know how to handle this Business question and need guidance.

For this week’s discussion, we are going to do something a little different. Since we are in the SF Bay Area, we run into lots of companies that are going public or having IPOs. In chapter 11, you are learning about stock issuance. While we hear about many companies that are public and do IPOs, if you stick around in the SF Bay Area and go to work for a startup, you will most likely be working for a company that was funded by a Venture Capital Firm and/or Private Equity Firm. Often the company will be raising capital using preferred shares in something like a “Series A round” or “Series B round,” “Series C Round,” etc…

So this week I would like you to go out and do some research. Please respond to the following points. Each point should be at least 5 sentences, with proper grammar and punctuation. I want to leave it somewhat general so you can go out and search broadly and write-up what you find.

1. Please write 5-20 sentences around what a Venture Capital Firm is and what a Private Equity Firm is. What do they do and please include an example of a firm and please include a startup that they are currently invested in or will invest in.

2. Please write 5-20 sentences about what financing rounds mean (ie. Series A, Series B, Series C, etc.). As a founder would you want your company to go through more rounds or fewer rounds and why?