Venture Capital - Entrepreneurial Sustainability, Entrepreneurship & Small Businesses Video Lecture | Entrepreneurship & Small Businesses - B Com

this is Jack recent graduate
professional engineer lately Jack's been
thinking about his cell phone that's
because every time he tries to call
someone from the cottage he invariably
loses reception but Jack thinks he might
have a solution he's designed a chip
it's no bigger than a fingernail but
Jack says with this chip a cell phone
could receive signals from twice the
distance that a regular cell phone can
but it's just an idea
and if Jack wants to prove his theory he
needs to find some money ships like this
don't make themselves so he takes his
idea to the bank but they won't give him
anything Jack doesn't have much of a
credit rating and he's got nothing to
put up as collateral the bank can't be
sure they'll get their money back
dejected but not deterred Jack makes his
way up to the fourth floor of a downtown
office building there he meets Jeannie a
venture capitalist Jeannie sees a lot of
promise in Jack's super chick so she
agrees to give him $500,000 more than
enough to get production started but
Jeannie has some conditions first she
wants to own 60% of the company and
second she wants to have the final say
on all important company decisions
that's fine with Jack he accepts the
conditions Jeannie gives him the money
and they're off to the races Jack built
his first chip and it's a huge success
in less than a year he's providing chips
to every major cell phone company in the
country but Jeannie thinks the chip has
gone as far as it can go so she tells
jack it's time to sell the company she
finds a buyer and the company sells for
fifteen million dollars since jack owns
40% of the company he gets 40% of the
profits or six million dollars the
remaining nine million dollars goes to
Jeannie