O'Reilly logo

Private Equity and Venture Capital in Europe by Stefano Caselli

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

2.2. The Main Issues of Investment Clusters

Different clusters of equity investment have specific features that contribute to investor activity. Every cluster is classified by

  • Definition
  • Risk–return profile
  • Critical issues
  • Managerial involvement within business venturing

Every stage is characterized by a risk–return profile related to the four drivers presented in Chapter 1: investment, profitability, cash flow, and sales growth. Every firm stage has risk measured as total or partial loss of invested sources, delays in project implementation, lower profits, etc., and an expected return usually measured as the internal rate of return (IRR).

The first term, definition, describes the agreement between entrepreneur and financial institutions. ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required