Tuesday, January 7, 2020

The Private Market And Venture Capitalist - 814 Words

Mr. Whitney presented enlightening information regarding entrepreneurship, why it is important and how the private market or venture capitalist are so important in investing in entrepreneurs. Venture capital is changing the global economy as banks are not investing in businesses anymore other than lending funds. Wealth creation has changed due to the internet and today wealth creation is out pacing the wealth created by inheritance (M. Whitney, personal communication, May 21, 2016). An axiom from Mr. Whitney’s company is networks create and disrupt net worth. As explained, networks bind things together, but they take away somewhere else. This can be illustrated in the railroad industry. The railroad created a network, which tied the east and west coast together, facilitating travel and movement of goods from coast to coast. However, the railroad industry disrupted net worth of the horse and buggy industry, as this mode of transportation was replaced. It is typical for o rganizations to follow a common business model within an industry but, if you assume that there is only one business model, then your organization gets disrupted and you are blindsided. Another idea presented was retail is a good indicator of market shifts, with three big trends portrayed in retail that is extended to every industry as a predictive indicator. One of these trends is consolidation, which we see companies buying up companies, therefore the customer base is getting smaller. ThisShow MoreRelatedEssay On Venture Capital834 Words   |  4 PagesWhat is Venture capital? Venture capital is financing that investors reach out to new businesses and little organizations that are accepted to have long-term achievement potential. For new businesses without accomplish capital markets, venture capital is a basic source of cash. 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