VENTURE CAPITALIST Definition

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VENTURE CAPITALIST (VC) is a professional equity-based investor. He/She manages one or more venture capital funds looking for suitable high-reward investments. VC investments are normally in riskier start-up or expansion ventures. Being high-risk investors, venture capitalists normally look for a substantially higher rate of return than might be realized in more traditional investments. See ANGEL INVESTOR.

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WORTH is an indefinite quantity of something having a specified value.

FINANCIAL RATIO ANALYSIS is: a. an easy and valuable way to interpret and understand the numbers found in your financial statements. Understanding the relationships between the numbers can help you answer critical questions about your business -- and if you monitor the ratios on a regular basis youll gain insight into how effectively you are managing your business. And: b. lenders also like to evaluate risk by using several sets of ratios; ratios of assets to liabilities, and ratios of lender-investor dollars to owner-investor dollars. Recognize that ratios are indicators and that only you can tell the full story about your business. So the more adept you are at explaining your financial ratios to your investor/lender, the better she/he will understand your business as he/she makes a investment/credit decision.

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