How cryptocurrency can help startups get investment venture capital VC| Ashwini Anburajan (Ted Talks)
Ashwini Anburajan, startup entrepreneur, speaking on Ted Talks, explains why she believes democratizing or decentralizing investment capital funding through cryptocurrency ICOs is the next evolution of Venture Capital Investment. The Ted Talks guest speaker details that:
“Venture Capital was designed to poor large some of money in a small number of companies that can sell for over a billion dollars. It was not designed to sprinkle capital across many companies that have the potential to succeed but for less.” – Ted Talks by Ashwini Anburajan.
Ashwini Anburajan sees ICOs as a venture capital market changer, as it means more investors and more funding, which makes it more likely for startups to get funded.
What is Venture Capital?
Venture Capital, also know as VC, is a type of private equity. This form of funding is provided by firms to early-stage or start-up companies that have exhibited high rate of growth in employees and/or annual revenue.
VC investment usually involves high risks as the companies or startups are in the very early stages of growth and have not really withstood the pressures of the market just yet. However, the investor stands to make a huge gain or ROI because of their investment in the company or startup at a very early stage for a low cost.
Types of Venture Capital Firms
Venture capital firms varies based on their choice and method of investment. There are various factors that may influence venture capital investment and these factors include:
- Industry type: some VCs will tend to only invest in a certain industries. This is because investors will tend to stick to the industry that they already know and understand.
- Business situation: some VCs will invest in companies that are just starting out, while others may choose to invest in more established companies that just require more funding and support to take it to the next level, like going public.
- Some prefer operating locally while others will operate nationwide or even globally.
- VC expectations can often vary. Some may want a quicker public sale of the company or expect fast growth. The amount of help a VC provides can vary from one firm to the next.
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