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Essay Instructions: This paper requires 3 questions (listed below) to be answered in essay format. The answers can be found in the case study that I have attached. The case study is called Neverfail Computing. The questions are as follows:

Question 1: What qualities attract Venture Capital? (can also be found online but if extracted from the case study, thats fine as well)

Question 2: Examine the valuation of Neverfail: Assume that Pacific Ridge Capital expects to realize an internal rate of return of at least 40% per year over five years on this round of investment. What does this imply for the future sales and income of Neverfail?

Question 3: Appraise the conditions on the term sheet from the perspective of both Pacific Ridge and Neverfail.

Essay Instructions: Thesis Statement:
The availability of capital for small and start-up businesses through a well developed venture capital industry has contributed to superior economic growth performance in the United States over other countries.

Introduction (should be 1-2 pages)

Body:
Main Point I
A) Defining Venture Capital
1. Brief history of venture capital
2. Legal structure of venture capital firms
3. Typical venture capital financed companies (stage of development, rate of success and failure, and evolution to publicly traded national and global companies)

Main Point II
A) Comparison of Venture Capital Activity in the United States and in Other Countries.
1. Statistical analysis of venture capital deals, and financed companies in the United States, European Union and other selected countries.

Main Point III
A) Comparison of Economic Performance
1. Economic performance as measured by the Gross Domestic Profit, unemployent rate and on specific backed industries.

Main Point IV
A) Examining Case Studies of Specific Backed Venture Capital Companies.
1. Key major companies: Apple, Microsoft, Federal Express and MCI - without the availability of venture capital these companies would not be where they are today.

Conclusion (should be 1-2 pages)

Essay Instructions: I have written three papers on venture capital (VC)decision making, each with an introductory section specific to the paper.
Chapter Two is a literature review spanning forty years of research focused on VC decision making criteria and the VC decision making process. This chapter serves as the foundation for the study as it highlights the common findings and generally accepted beliefs reported in the vast majority of studies while also identifying key areas that have yet to be explored. Although the evolution of the two research streams are presented separately in order to focus on the developments and emerging areas of interest within each stream the overlap between the two is then highlighted. Finally, the key decision making criteria repeatedly identified in past research are discussed in terms of their role and perceived significance within the context of VC decision making.
In Chapter Three I present the results of an exploratory study of rejected, or dead, deals, those deals which have not been selected as portfolio investments. Researchers have typically focused on the one percent of deals that are selected by VCs yet little attention has been given to the remaining, majority, of deals that do not successfully make it through the screening and evaluation process. The study is based upon the analysis of eleven years of archival data collected from a European VC firm. I first seek to provide an in-depth understanding of the factors and processes associated with deal rejection while also attempting to determine if the four main criteria reported as reasons for positive investment decisions are similarly cited as key reasons for deal rejection. Additionally, I attempt to identify patterns of rejection across the eleven year timeframe which includes the decisions for two separate investment funds within the firm.
Chapter Four further examines the data on rejection and focuses on the specific criteria related to the characteristics of the firm’s portfolio. I hypothesize that the investment decisions, specifically rejection decisions, of VCs will be influenced by the evolving characteristics of the firm’s portfolio and therefore use factors representative of the portfolio as the independent variables. Drawing on the results of both the qualitative and quantitative analysis a dynamic model of VC decision making is proposed which highlights the interaction between the multiple activities within a VC firm and also serves to integrate the two streams of literature within this area of research.

Now I need the introduction chapter that introduces the concept of strategic decision making in business (Eisenhardt & Zbaracki, 1992; Mintzberg, Raisinghani, & Theoret, 1976) in general. A section is needed that discusses the importance of the environment or decision making context (Brunswik, 1955; Hogarth, 1981). Also, a brief section commenting on why the VC industry is an appropriate (or compelling) setting to study decision making, both process and content. Including comments on bounded rationality (Simon) and organizational decision making (March & Simon)would be appropriate as well.
There are faxes for this order.

Essay Instructions: Please write each question above each answer:


1. How firm raise capital by using venture capital? What conditions we need to raise capital by using venture capital?
2. What is venture capital, and what types of firms receive it?

3. What is the risk from using venture capital for both firms and investors (or there is no risk)?
4. What is the benefit from using venture capital to raise the firm's capital for both firms and investors?
5. How we raise firm capital by selling securities to public? How selling securities to public benefits both firm and investors?

6. On which condition that the company use selling securities to public to raise capital?
7. Who sell the securities to public company or investor? Who will gain benefits from selling the securities to public company or investors? Is there any risk for sell the securities to public?
8. When company decides to issue new security they can sell it as public issue or private issue. What conditions that both company and investor benefit from selling these new securities either as public or private
9. There are two kinds of public issues: General cash offer and rights offer. Which of them is better for both company and investors and for raising the firm's capital?

10. Explain why in term of the initial public offering when the firm's existing shareholders wanted to buy the shares , the firm's wouldn't have to sell them publicly in the first place?