Continue your research into venture financing in the U.S. This week, research short-term and long-term financing using the following questions to guide you: What is the aggregate short-term and...

Venture Capital is a form of risky investment in the project with uncertain cash flows and
profit. Hence, the risk element is very high here and therefore such type of financing projects
is sometimes called as Risk projects. They are generally started with an idea to take benefits
of the new innovation. (Thomas H Byers, 2012)
There are two main source of venture Financing in USA and those are as follows:-
1) Venture Capital Firm
2) Private Angel Investors
The venture firms helps greatly to the new ventures in the following situation:-
1) It provides long term share capital to a new company to overcome uncertainty and
become established one.
2) Helping the entrepreneurs to start a company by providing initial capital and operating
amount
The venture financing helps a start-up in its starting period and leave when it becomes an
established one with good profit and cash flow. (Thomas H Byers, 2012)
What is the aggregate short-term and long-term finance requirement for ventures?
The short term financing requirements for a venture are as follows:-
1) Short term operating needs to run day to day business
2) Direct Expenses like Labour and Material cost
3) Indirect Expense like Overhead cost
4) Product Development cost
Long Term requirement is as follows:-
1) To fund growth and Expansion
2) To meet long term capital requirement
3) To develop new product lines ((Thomas H Byers,2012)
 What are the most important sources of short-term and long-term finance for ventures?
The important source of short term Financing is as follows:-
 Venture Capital
 Angel Investors
 HNI
 Govt. Agencies Like Industrial Development bank
The Long term Finance sources are
 Private Equity
 Long Term debt from Banks and Financial Institutions
 Issuing of bond
 IPO
What organizations, both private and government, provide finance to ventures? Select
any one organization and describe its activities
Private Organisation is as follows:-
1) Private Equity
2) Angel Investors
3) Venture Capital Firm
4) Insurance Companies
Govt. Organisations are as follows:-
 Federal Insurance Company
 Pension fund corporation
 Industrial Development Bank
 MSME Enterprises
One of such company who helped indirectly in venture funding by providing capital to
venture Capitalist and which is backed by federal after 2008 downturn is AIG which is an
insurance corporation
Company Overview- AIG Group
American International group is a US...