Enterprise of venture capital investment is evaluated uncover close (1)
From;    Author:Stand originally

An in translating task detailed list article that character musts more. Many when beautiful time compares forecast a lot of, because want as far as possible faithful at textual, can let layman also can be understood again. The place that causes difficulty possibly to the part to reading understanding made comment, be endeavored. Translation is as follows:

Once do poineering work person the economy provision that involves investment item with the negotiation between home of venture capital investment, bilateral around move company value is evaluated begin in all dance.

The evenhanded value that assessment core topic for discussion is an enterprise (Fair Value, note 1) how much be? Decide home of venture capital investment will own the how many share of the enterprise accordingly.

But the concept that I feel to evaluate often is misunderstood by the participator place of this one process however, invest a project inchoately in order to do poineering work to be especially very. To these the value of the enterprise is evaluated and it is worth how many money now (Current Value, present worth) not how old relation. If related word, how can home of venture capital investment think one is in again prospective 2-4 year gain all up and is what delicacy has the company that battalion controls to be worth 10 million U.S. dollors gigantic? The answer is, almost projects of all venture capital investment are with can be being changed preferential the means of an investment trades. Once be invested,this is meant the operation of the company is goodish, that money that we invest is just like the investment of brushstroke creditor's rights that is this company. If this company is managed,be not arranged or downhill, we are met first at doing poineering work person take money to go person. Of course this kind of case happens in ours to oppose a scale merely (and this one scale is evaluated by value just about affirmatory) can acquire how many investment to us when redound is crucial. (note 2)

Another main factor that deserves a consideration is to only the investment project of lesser proportional inchoate poineering phase can go down according to the fixed target development when investment. Come from the experience of project of 100 many different and inchoate poineering investment 17 years according to me, have a such 1/3 law:

Go well in that way and gain sizable profit what the project of 1/3 can imagine like you. General redound is in 5-10 times between. And their person that do poineering work basically also works well.

The project of 1/3 moved toward crossroad finally. Although they can be managed go down, but cannot generate profit of high specified number. The redound of these projects is in 1-2 times between. The much that home of venture capital investment takes away a project to earn arrives total income.

The project of 1/3 cannot die a natural death. They are not to be shut to be with the price pass on under investment. The total income of these projects puts in home of venture capital investment 's charge all, although they cannot be worth how many money.
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