M2A1 Essay Example | Topics and Well Written Essays - 750 words

M2A1 - Essay Example Dr. Samuelson, the founder and CEO of CardioFIb should accept investment from Greenhouse or not and Rudernman, the co-founder of Greenhouse should continue with this investment offer to CardioFib. These two key questions will be answered based on in depth analysis of the case study. Trends in venture capital Venture capital business is very much essential for today’s aspiring entrepreneurs for giving lives to their innovative ideas and insights. This business acts as catalyst for the any innovative innovations and risk associated entrepreneurship. It creates job opportunities, stimulates economic growth of a country or global economic growth and recovery. The venture capital industry has been undergoing in substantial transition. It is termed as rightsizing. The leading global players in this industry have been shrinking due to poor return on investment and decrease of potential new entrepreneurship to asking capital for venture. This industry enjoyed a substantial growth rate in pre dot com bubble era. The transition has been underway in quite slow motion due to frequent economic downturn in global economy. Still, the venture capital firms with wide market presence have been enjoying good return (Pearce & Haemming, 2012, p.1). Greenhouse relative to trends in venture capital Greenhouse was established at the time of global tech bubble. It missed out the pre era growth phase of this industry. The company business model is a single industry specific which is healthcare industry. Though the business operates with a narrow customer segment, but it had comparatively better opportunity and growth potentiality. The company achieved successful completion of $12 million fund raising within one and half year of establishment. Therefore, the fund raising potential of the company is very strong as it did it within an era economic slowdown in global economy due to tech bubble. Therefore, by comparing the business trend of the company with industry, it can be said th e company had developed a strong partner network to operate actively and to serve its target segment. Positioning of Greenhouse relative to venture capital industry The case describes the position of the company in early stage of 20th century and its first two years of its establishment. The company has very quickly developed potential partner network to raise fund to be ready to serve its target segment. It achieved more than its initial goal which developed considering the economic condition. But as a venture specialist for a specific and steady industry of healthcare instrument business, it was able to show quite attractive and noticeable business model to its investment network partners. The company developed its short goals by considering environmental factors to make a strong foothold in the venture capital industry. Greenhouse target "deals" relative to Greenhouse resources, relative competitive position and advantages The company has set target or business goals with a deter mination. It desired to less prediction of cash availability, accept funding after in depth scrutiny of Target Company with high consideration of crunch downs. The company also concentrated on fewer deals with comparatively stronger competition from premier deals. It can reduce the future risk of return on lower investment. It also expected few financing after initial funding to be ready next potential funding. Pros and cons for participating