Assignment First

  本篇代写论文-VCI讲了从VCI获得资金的根本困难是使他们相信MTT有能力执行(Pena, 2002)。VCI提供资金后,不能向MTT要求退款。因此,VCI在这一过程中的财务风险较高。说服VCI是MTT将要面临的重要任务。这是风险投资过程中比较困难的任务之一。本篇代写论文文章由加拿大第一论文 Assignment First辅导网整理,供大家参考阅读。

  Disadvantages of this process are elucidated in detail in the following

  Fundamental difficulty in obtaining funds from VCI is convincing them that MTT is capable of performance (Pena, 2002). VCI after providing the capital cannot ask for the money back from MTT. Owing to this the financial risk for VCI is higher in this process. Convincing VCI is an important task that MTT will face. This is one of the harder tasks that are involved in the process of venture capital.

  Loss of equity for MTT involves loosing certain level of ownership to VCI. Since the capital that has been considered is the innovation. VCI will have key control over several of the decisions made by MTT. Ownership rights will be essentially controlled by VCI. They should be involved in all the key decisions made by MTT. Key decisions cannot be made without the permission of VCI. They can face constant scrutiny and surveillance from VCI and they can control all the decisions made by MTT. MTT will not have the powers to make decisions on their own without certain inputs from VCI. This can be an impeding factor to bring about innovation in the company.

  In capital funding provided by VCI they need not give the entire amount upfront. They can choose to release funds at regular interval. Hence the funding plan needs to be worked out in the beginning.

  Ultimately the success or failure of the firms depends on the individual agreement of the venture capital deal (Belleflamme, Lambert, and Schwienbacher, 2013). They need to consider all factors and come up with a deal that is feasible for all the stakeholders involved in the operation. Venture capitals can prove to be advantageous if it is framed properly and the start up company has a solid plan for growth in this process. From analysis of the cashflow statement, income statements and forecasting models it can be seen that there is need for more information. Growth potential of wearable devices is considerably high. It is expected that the wearable devices market would grow rapidly in the coming decade. MTT has the potential to succeed but it needs capital from VCI. It has been suggested MTT should change some of its organizational structure to be more effective (Barry et al 1990). It is recommended that MTT should seek venture capital equity from VCI. MTT should watch out for the pitfalls while seeking funding. VCI should be aware that MTT has strong potential for growth. Nevertheless they are still a strong risk owing to the fact that they are a start up company that ahs posted losses in the past fiscal year. There is a need for a more concrete business plan regarding product development, manufacturing, supply chain, distribution and advertising for the company. Money for supply chain, distribution, retailing and sales are missing in the current plan. After factoring in all the details the companies should develop a plan that would allow growth for MTT which would make VCI benefit in the process.