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(Solution) - Venture capitalists provide funds to finance new companies star

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Venture capitalists provide funds to finance new companies (start-ups), usually in return for a share of the firm?s initial profits (if any). Of course, venture capitalists look to back experienced entrepreneurs with strong products (or at least product blueprints). But potential competitors and the structure of the market into which the new firm enters also are important. According to the conventional wisdom, the best start-up prospects involve entry into loose oligopolies. What economic factors might be behind this conventional wisdom?

 







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This question was answered on: Jul 11, 2017

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