Friday, February 20, 2004
Hedge Funds
Like mutual funds, hedge funds pool investors' money and invest those funds in financial instruments in an effort to make a positive return. However, unlike mutual funds, hedge funds are not registered with the SEC. This means that hedge funds are subject to very few regulatory controls. In addition, many hedge fund managers are not required to register with the SEC and therefore are not subject to regular SEC oversight. Because of this lack of regulatory oversight, hedge funds historically have been available to accredited investors and large institutions, and have limited their investors through high investment minimums (e.g., $1 million).
Like mutual funds, hedge funds pool investors' money and invest those funds in financial instruments in an effort to make a positive return. However, unlike mutual funds, hedge funds are not registered with the SEC. This means that hedge funds are subject to very few regulatory controls. In addition, many hedge fund managers are not required to register with the SEC and therefore are not subject to regular SEC oversight. Because of this lack of regulatory oversight, hedge funds historically have been available to accredited investors and large institutions, and have limited their investors through high investment minimums (e.g., $1 million).
Venture Capital and Angel Investing
Venture capital is the primary source for fundings for private companies that can no longer bootstrap their operation, but are not ready to go public yet.Venture capital funding is seen as the next logical step as a company gets bigger. When funded with venture capital, it is usually seen as a step down the road towards going public with an IPO.
Venture capital is the primary source for fundings for private companies that can no longer bootstrap their operation, but are not ready to go public yet.Venture capital funding is seen as the next logical step as a company gets bigger. When funded with venture capital, it is usually seen as a step down the road towards going public with an IPO.
