Discuss the extent to which venture capital deal structures play a role in creating potential conflicts between VCs and entrepreneurial teams.

Venture Capital and Entrepreneurship

Write an essay with a maximum word count of 2000 words on
the following question:

Entrepreneurs should always regard venture capitalists as ‘the enemy’. Using academic literature discuss the extent to which this statement is true.

Students must address the following in order to pass this assessment:

1. Summarize the literature on venture capitalists’ role in the growth of start-ups. Discuss the trade-off between founder dilution and the potential value added by external investors like reputation, network, expertise, and experience.

2. Discuss the extent to which venture capital deal structures play a role in creating potential conflicts between VCs and entrepreneurial teams.

3. Research on the role of venture capitalists in helping to build companies and consider the evidence as to whether they help or hinder entrepreneurs.

4. Comment on how the role of venture capitalists is changing, the present state of the industry, and what new funding alternatives may emerge in the future.

INCLUDE 4 POINTS AND SEPARATE THEM WITH TITTLES.