t.  What information was the VC looking for?  Why?

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter2: Developing The Business Idea
Section: Chapter Questions
Problem 6EP
icon
Related questions
Question

You have a successful shop and feel that the demand for your shop has outpaced your capacity.  You have decided to pitch your idea to a venture capitalist (VC).  You brought in your income statement as you highlight that last year your gross profit was $500,000.  the VC tells you that number is pointless.  He asks you for your net profit.  What information was the VC looking for?  Why?

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Business analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Entrepreneurial Finance
Entrepreneurial Finance
Finance
ISBN:
9781337635653
Author:
Leach
Publisher:
Cengage