Venture Capital
What is venture capital?
Financing investors provide to startups
What is fixed capital?
Long lasting production items
What is working capital?
Items for day-to-day operation
Give one example of use.
Funding a startup
Give examples of fixed capital.
Buildings, machinery, tools
Are working capital items used up?
Yes, continually used up
Why is it given?
Long-term growth potential
Is a tractor fixed capital?
Yes, it is equipment
Is raw material working capital?
Yes, used daily
What’s the role of institutions?
Loan money to entrepreneurs
What is it used for?
Production of goods/services
What is its business role?
Day-to-day business operation
Name one source of venture capital.
Banks or cooperatives
How does it affect labour?
Increases productivity of labour
Give two examples of working capital.
Cash, raw materials, bank