In order to turn an investment into a tangible return, a venture capital fund must have an exit strategy. What exit strategies exist, and how are they affected by the stock market?
Answer to relevant QuestionsExplain how an investor receiving a 2 or 3 percent quoted return in an inflationary environment may actually experience a negative real rate of return. Describe how the returns of a venture capital fund are distributed between the general partners and the limited partners (investors). What is private equity, and what does it include? Explain why an angel investor can be important to a company just starting out. What is the Sharpe approach to measuring portfolio risk? If a portfolio has a higher Sharpe measure than the market in general under the Sharpe approach, what is the implication?
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