Homework Assignment Example | Topics and Well Written Essays - 750 words - 7

preparation - Assignment ExampleIt is true that post-money valuation is always higher than pre-money valuation because of a few reasons worthy noting. First, post-money valuation, thus, denotes the status of a club after it has receive some funding. Second, the post-money state is equally a bread of capital injection within the organization something that is absent in pre-money valuation. It is imperative to note valuation is a financial concept that is predominant in venture capital and private equity to determine the prospects of financial support or investment.It is true that any form of investment has risk especially for the early stage ventures different the late stage venture capital. This is because of limited financing and resources in the market to attract customers. An separate chip for early stage ventures includes the utilization of capital in other stabilizing instead of expanding the business. In other words, the various stages such as start-up and formative of e arly ventures prevent it from picking up as distant to the late stage venture capital.After Initial Public Offering (IPO), it is true that shareholders could freely plow their shares. One of the reasons entails assessment of scarce commodity that often gives analysts a chance to advise shareholders on issues of their prospectus. Second, company prospects with strong brokers offers platform for trading in shares in public to earn dividends through smaller and timberland brokerages (Bierman, 2011). Alternatively, reading of prospectus carefully is essential in the determination of IPO especially in the kickoff investment to establish ones high-net worth for dividends.There is advantage and disadvantage of being a public company. The advantage is that such a company is open to trading and investment prospects for most investors. It mean that shareholders have a leverage to trade in shares, securities, and bonds with high prospects of value return. However, being a