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Company Investment in Company's Staged

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Why would a company invest in another company in stages? Do you have any examples?

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Solution Summary

The solution discusses why a company would invest in another company in stages. Examples are given.

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Venture capital is a term to describe the financing of startup and early stage businesses as well as businesses in "turn around" situations. Venture capital investments generally are higher risk investments but offer the potential for above average returns. A venture capitalist (VC) is a person who makes such investments.

Venture capitalists generally:

* Finance new and rapidly growing companies;
* Purchase equity securities;
* Assist in the development of new products or services;
* Add value to the company through active ...

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