Entrepreneurial finance and venture capital

Entrepreneurial companies face main issues like a high-risk investment. In return to that risk, they will also face high returns also. The two main sources for the accumulation of the capital are the Banks and the Venture Capitalist. Banks will monitor less effectively and they face the capitals demands from their own investors. Venture capitalist monitor high effectively and face a high cost of capitals. But the disadvantage of a venture capitalist is they charge a large number of returns of at least 30-40% per year whereas this is very less in banks. The capital amounts provided by the banks or the venture capitalist changes based on the type of ventures. 

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