Revista de Economía y Negocios

Competition in the Product Market, Venture Capital and the Success of Entrepreneurial Businesses

Abstract

Benjamin Bugl*

A sort of private equity fund known as venture capital (VC) is given by venture capital firms or funds to start-ups, early-stage, and rising businesses that have demonstrated rapid growth (in terms of number of workers, yearly revenue, and scope of operations). In exchange for equity, or a stake in the business, venture capital firms or funds invest in these start-ups. In the hopes of seeing some of their investments succeed, venture capitalists assume the dangers of investing in high-risk start-ups. Due to the significant level of risk that start-ups confront, VC investments frequently fail. The start-ups primarily come from the high-tech sectors of information technology (IT), clean technology, or biotechnology, and they are typically built on cutting-edge business models or technological advancements.