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

Homework - Assignment ExampleIt is true that post-money valuation is always higher than pre-money valuation because of a few reasons expenditure noting. First, post-money valuation, thus, denotes the status of a companion after it has receive some funding. Second, the post-money state is equally a mark of capital injection within the organization something that is disappear 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 finance or investment.It is true that any form of investment has risk especially for the early stage ventures unlike the late stage venture capital. This is because of limited pay and resources in the market to attract customers. An otherwise hindrance 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 early v entures prevent it from picking up as opposed to the late stage venture capital.After sign Public Offering (IPO), it is true that shareholders could freely trade 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 quality brokerages (Bierman, 2011). Alternatively, reading of prospectus carefully is essential in the determination of IPO especially in the first 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 means that shareholders have a leverage to trade in shares, securities, and bonds with high prospects of value return. However, being a