CURRENT EVENT ARTICLE REVIEW ON ANYTHING FINANCE RELATED Essay

CURRENT EVENT ARTICLE go off ON ANYTHING FINANCE RELATED - Essay ExampleThe survey as well as found that consumer IT, health-c ar IT and business IT rest as favorites for VCs to increase their investment dollars at the expense of clean technology, medical-device and biopharmaceutical companies. The paradox though is that both CEOs and VCs ar optimistic about the increase in value of their investments (Basich, 2011).To adequately analyze this article it is first all important(p) to understand the role of Venture Capital for the startup businesses. Venture Capital is a finance that is provided to startups that are too small to raise the capital they need, either through bank loans or otherwise precisely that have a high potential for growth. The numerous benefits of VC is summarised by research conducted by Puri and Zarutskie (2010) as follows VC-financed firms typically grow more quickly, tend to grow bigger and are less likely to fail in comparison to non-VC-financed firms. Whe n we place this into the current American context it means that VC-financing would be critical for rapid ruminate creation due to their typical quicker growth rate and given that most employees are apply by small businesses such as these rising startups. The higher(prenominal) potential for massive growth also portends well for the US economy as it predicts higher wages associated with large companies that will translate to higher disposable incomes and thus increased consumer spending. Finally, the decreased likelihood of failure of VC-financed firms is vital for increasing investor confidence in the US market in general and entrepreneurship in particular.The articles prediction of decreased supposition investment in 2012 therefore robs the US of the hope of quick recovery from its slow economy. Venture investing is often accompanied by other support services such as increased guidance capacity, industry networking and so on which are equally critical in supporting the growth of startups.