2.2. The Main Issues of Investment Clusters
Different clusters of equity investment have specific features that contribute to investor activity. Every cluster is classified by
- Definition
- Risk–return profile
- Critical issues
- Managerial involvement within business venturing
Every stage is characterized by a risk–return profile related to the four drivers presented in Chapter 1: investment, profitability, cash flow, and sales growth. Every firm stage has risk measured as total or partial loss of invested sources, delays in project implementation, lower profits, etc., and an expected return usually measured as the internal rate of return (IRR).
The first term, definition, describes the agreement between entrepreneur and financial institutions. ...
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