The Venture Capital Process
Exhibit 14.8 represents the core activities of the ven¬ture capital process. At the-heart of this dynamic (low is the collision of entrepreneurs, opportunities, in¬vestors, and capital.10 Because the venture capitalist brings, in addition to money, experience, networks, and industry contacts, a professional venture capital¬ist can be very attractive to a new venture. Moreover, a venture capital firm has deep pockets and contacts with other groups that can facilitate the raising of money as the venture develops.
The venture capital process occurs in the context of mostly private, quite imperfect capital markets for new, emerging, and middle-market companies (i.e.,