Quote
Fisher, Eric. (2009, 26 January). Venture capital dries well. Street & Smith’s Sports Business Journal, 11.38, 1
Target
The aim of this paper is to discuss trends in venture capital investments in the sports industry in the light of current economic conditions.
Summary
The severe recession in the U.S. economy has investment risk in the sports industry affected in a number of ways, particularly in companies with a focus on digital media. to launch digital media companies to rely on the market for venture capital financing, but the recessionary conditions in the market have begun to limit their traditional loans and investments by venture capital investors. In 2008, as investment projects dropped by a significant number, digital media and businesses have been forced to become more competitive, or just less money. The investment money is still available for good business, but companies must be more than just a good idea and a rough business plan by a private equity venture to be reviewed. A robust business plan, a history of success and growth levels of the public is now necessary. Companies should also develop a product or a service that is innovative, rather than trying to compete with similar offerings from big companies. In addition, companies should not rely on two revenue models on advertising or subscription basis, as a risk requires a balanced combination of both. The value of digital media projects is falling into recession, but it has created opportunities for investment in the price. While venture capital firms can not see a return on investment much more short-and medium-term economic there is an incentive for start-ups at lower prices than fund with an expectation of higher returns in three of five years ago.
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