Ask Experts Questions for FREE Help !
Ask
    sastryforu's Avatar
    sastryforu Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Aug 20, 2010, 11:16 AM
    What is the ratio of profit sharing in venture capitalism
    If a person has no capital and has idea for a new business,he approaches venture capitalists.What is the profit ratio sharing between the capitalist and the person if the total investment is by the capitalist.
    bendingleconte's Avatar
    bendingleconte Posts: 112, Reputation: 9
    Junior Member
    		  
    #2

    Aug 31, 2010, 07:34 PM

    It will certainly depend on several factors:

    -the level of risk is involved for them to front the money, so have a great business proposal ready.

    -Who you approach. Some larger (more reputable) companies will typically have a 2-3% management fee and a 25-30% profit share.

    Be careful and check references because there are plenty of scams out there as well.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Question based on admission of new partner relating to new profit sharing ratio [ 1 Answers ]

A & B are partner sharing profits in the ratio of 7 :3.C was admitted on 3/7 share in the profit .What will be the new profit sharing ratio ?

Profit and loss statement ratio calculation [ 3 Answers ]

Please note, this is a FINANCE question, so it should be answered using the principles of finance and not accounting :). My question reads as follows. I will attempt to work my way through it, skipping what I do not understand in hopes of assistance :). a. Gross Profits Sales ($40,000,000) ...

Profit Sharing Trust [ 1 Answers ]

I work in a small business and we received a bill for some work done on our profit sharing trust property but the bill was addressed to the company instead of the profit sharing trust. We'll be paying it out of the profit sharing trust but I just want to know if I should ask the vendor to redo the...

View more questions Search