Venture capital is a form of financing that provides funds to early stage, emerging

companies with high growth potential, in exchange for equity or an ownership stake.
Venture capitalists take the risk of investing in startup companies, with the hope that they
will earn significant returns when the companies become a success. They are wealthy
enough to take losses that may be incurred by investing in unproven, high-risk companies.
When choosing companies to invest in, they consider the company’s growth potential, the
strength of its management team, and the uniqueness of its products or services.
Venture capital allows entrepreneurs with minimal operating history and inadequate funds
to secure capital to launch their business and also get guidance from experienced business
executives. Entrepreneurs are often unable to access bank financing due to the lack of
experience in business and the high-risk nature of startup businesses, and venture
capitalists come in as a relief.
Venture capitalists provide funding in exchange for control of decision-making and a portion
of the company’s ownership. Some of the successful companies that gained success from
venture capital funding include Facebook, Uber, Twitter, Airbnb, Paypal, and Xiaomi.
Five Stages in Venture Capital Financing
There are five stages in venture capital financing, and they include:
1 Seed Stage: At the seed stage, the company is only an idea for a product or service, and
the entrepreneur must convince the venture capitalist that their idea is a viable investment
opportunity. If the business shows potential for growth, the investor will provide funding to
finance early product or service development, market research, business plan development,
and setting up a management team. Seed-stage venture capitalists participate in other
investment rounds alongside other investors.
2 Start up Stage: The start-up stage requires a significant cash infusion to help in advertising
and marketing of new products or services to new customers. At this stage, the company
has completed market research, has a business plan in place, and a prototype of their
products to show investors. The company brings in other investors at this stage to provide
additional financing.
3 First Stage: The company is now ready to go into actual manufacturing and sales, and this
requires a higher amount of capital than the previous stages. Most first-stage businesses are
generally young and have a commercially viable product or service.
4 Expansion Stage: The business has already started selling its products or services and
needs additional capital to support the demand. It requires this funding to support market
expansion or start another line of business. The funding may also be used for product
improvement and plant expansion.
5 Bridge Stage: The bridge stage represents the transition to a public company. The business
has reached maturity, and it requires financing to support acquisitions, mergers, and IPOs.
The venture capitalist can exit the company at this stage, sell off his shares, and earn a huge
 return on his investments in the company. The exit of the venture capitalist allows other
investors to come in, hoping to gain from the IPO.

Key Factors contributing to the success of the business.

 Be Different. “In order to be irreplaceable one must always be different,” said
Chanel. ...
 Be Daring. Chanel was willing to take the risks she needed to in order to
reach the top. ...
 Leave a Strong Impression. Chanel understood the importance of appearance
to getting ahead in the business world. ...
 Never Give Up.

Be Different
“In order to be irreplaceable one must always be different,” said Chanel. “People laughed at
the way I dressed, but that was the secret of my success: I didn’t look like anyone.” Chanel
disliked the look of corsets and felt that women were taking on too much discomfort in the
name of fashion. “Luxury must be comfortable, otherwise it is not a luxury,” she said, and
replaced the corset with comfort, casual elegance, and a feeling of hidden luxury. She mixed
up the vocabulary of male and female clothes. Her fashion themes included simple suits and
dresses, women's trousers, costume jewelry, perfume and textiles.
Be Daring
Chanel was willing to take the risks she needed to in order to reach the top. From day one,
her career had been characterized by her willingness to defy convention time after time.
When Chanel first introduced her jersey and tweed suits for women, she was rebuked by
the European critics. But, Chanel gave no matter. “The most courageous act is still to think
for yourself,” she said. “Aloud.” She ignored the critics and continued embodying her bold
vision of fashion and femininity. She designed and wore open-necked shirts when everyone
else was buttoning theirs up; she wore trousers and created her signature scarlet lipstick.
“Success is often achieved by those who don't know that failure is inevitable,” said Chanel.
Leave a Strong Impression
Chanel understood the importance of appearance to getting ahead in the business world.
“Dress shabbily and they remember the dress,” said Chanel. “Dress impeccably and they
remember the woman... It’s best to be as pretty as possible for destiny.” It takes 30 seconds
to make a first impression. Chanel believed that time must be filled with elegance and class.
She wanted women to be beautiful so that they could become someone and to do
something important.
Never Give Up:
During the World War II Chanel had to shut down her fashion business, but she never lost
faith in herself. Despite having to overcome her age and her ruined reputation.

1. Resolute motivation and passion

The first and foremost quality of a successful entrepreneur is passion.
No one can achieve anything if they do not have the passion for reaching that goal. As a
result of this absolute passion, motivation starts to create in an entrepreneur’s mind as
he/she takes on new tasks and learns new things in order to reach that goal.
Motivation keeps blood running, helping an entrepreneur to keep hope and overcome
obstacles as he or she advances towards the goal. This is why a successful entrepreneur is
passionate and motivated in a whole new demeanor.
2. Self-discipline
This is one of the most essential characteristics of a successful entrepreneur.
If an entrepreneur is able to accomplish essential tasks (whether he is feeling up to it or
not), then he/she will be able to achieve higher success. Self-discipline basically means to
master the inner self and inner emotions to generate a sense of responsibility of getting the
job done, which fosters self-direction.
3. Risk-taking ability
Entrepreneurship is all about taking risks. Entrepreneurs have the ability to take greater
risks to achieve greater success, but not all risk-takers are successful entrepreneurs. A
successful entrepreneur knows when to take risks and which risks will be beneficial or
harmful to the company or himself.
All entrepreneurs plan before taking risks and make a plan B (in case of any loss of mishap)
and establish a suitable ground for the results of the risks.
4. Creative thinking
A successful entrepreneur is a creative thinker with loads of ideas constantly flowing
through her mind. This drastic ability to think of a wide range of new ideas helps an
entrepreneur to initiate different types of business in a unique, creative way.
5. Persistence
Persistence is the most basic and essential quality of a successful entrepreneur because
even good entrepreneurs experience failures and hurdles. But with persistence, you’re able
to pick yourself back up and keep moving towards your goals.
These five qualities will help you become the successful entrepreneur you aim to be. Look
for these qualities in yourself, and continue to progress each day for the benefit of yourself
and your company.

3A:
1. optimism supports creative thinking and generation of new ideas.
optimistic people trend to be more creative in their thinking. thinking in this way about the
future is a good thing if you are an entrepreneur.
2. optimism produces a tendency to act.
Entreprenuurs are faced with hard choices virtually every day. under such circumstances,
rather than just waiting to act and wavering on which course of action to take, optimistic
plunge right ahead.
3. optimism supports persistance  in a chosen course of action that is difficult.
when undertaking difficult activities  or confronting somthing that is a personel challenge ,
optimists , not surprisingly , are more confident and persistent . even when they feel like
they are not making much progress they stick to their chosen path.
4. optimism facilitates bouncing back after a failure.
as we have seen at the outset, launching a sucessful new business is very difficult.even the
most competent and lucky entreprenuer will encounter failure at one time or another.
optimistic entreprenuers are resilient in two  significant ways . first they are
emotionalltymore resilient. the second type of resilience is cognitive. thinking positively
encourages optimistic people to think more broadly which in turn allows them to be flexible
and open to new ideas.
pessimists on the other hand tend to be narrow focused in their thinking.
optimism breeds sucess.
there is some emerging evidance that optimism may be linked to financial sucees of
entreprenuers.

Coco Chanel was one determined woman.

An entrepreneur, an innovator, a powerhouse in society and even perhaps... a Nazi spy. She
built a fashion empire from scratch.

She knew how to pick her battles and when to let a problem remain a problem.
She chose a life of moving forward, no matter what... enemies, threats, and even war. She
took it all in stride.

Chanel liberated women from the corseted silhouette and popularized a sporty, casual chic
as the feminine style of the post-World War I era.

Known lifelong for her determination, ambition, and energy... she achieved both success
as a business woman and social prominence thanks to the connections she made through
her work..

However, Chanel also generated controversy, particularly during the German occupation of

France in World War II when she was believed to be a Nazi sympathizer and spy.

She is the only fashion designer on Time magazine's list of the 100 Most Influential People
of the 20th Century.
Determination helps you in life because it helps you become motivated to accomplish your
fears, tasks, or mental blocks. Also meaning, determination helps get you through tough
situations in life and help you in ways that make you think you are a good person, no matter
how hard the situation is.
Determination is very important because it enables us to persist in the face of difficulties. It
makes us to march fearlessly ahead with faith until we achieve our goal. Since life is never
smooth, many of us fall off when we come across obstacles. But with determination, we can
overcome any type of obstacle.
Determination therefore makes us creative and imaginative. However, in order for us to
succeed in life, we must set definite goals for ourselves, work hard to put in the necessary
effort.