VENTURE CAPITAL STRUCTURE AND ORGANISATION

Abstract

This study is an opinion paper which examined the influence of Venture Capital Structure on the Organisation. One of the major constraints of startup, early-stage and emerging enterprises that have been deemed to have high growth potential or which have demonstrated high growth (in terms of number of employees, annual revenue and scale of operations), is startup fund. In the late 70s and early 80s, the United States of America government was permitted to invest pension funds on venture capital funds which eventually gave birth to venture capital firms that invest funds in these early-stage companies in exchange for equity. Apart from providing funding, venture capital structure also offers mentorship and investor alliance networking to help startups achieve their success. Venturing is a risky business with a high failure rate. Even with a low rate of success, venture investing model is still attractive for many capital venture structure because the higher risk at stake will give higher possibilities for gain to the company. As an opinion paper, the study adopted secondary data as source of data collection which entailed review of literature related to the study under investigation. The findings of the study revealed that venture capital structure influence organisational performance positively, as it provides financial support services which protect the business from any financial interruption or constraint hence, necessitate the adequate and effective performance of organisation. The study concluded by asserting that venture capital structure enhances organisational success as it provides the financial backup for organisational effectiveness. Venture capital structure is considered a pivotal and essential source of business funding and growth. It is a life wire for enterprises and the future of enterprises to an extent, depends on it.