How VCs Zero In The Investment Decision?

Printer Print Email Email

Risk Measurement

risk management, fundingBefore investing in any company, the VCs try to figure out the accomplishments of the business that is already made and the ones that is to be accomplished. The risks attached to the business in terms of legal and regulatory issues, the exit strategy from the investment and the chances of getting the return are few such risks that VCs evaluate in the initial rounds of their meeting with the founders. Even VCs calculate risks and their evaluation process vary depending on the type of fund and the individuals making the investment decisions. Whatever may be the case, VCs try to mitigate the risk while producing big returns from their investments.