ABSTRACT
This dominance of capital gains creates a key concern on the part of the venture capital investors in such high risk businesses. How do they realize the capital gain which is created if the company is successful? They do not wish to be locked in until the business becomes cash positive and can start to pay dividends. Hence buyers need to be found for this equity at its increased value, once the company has proved that the product works and that its market potential makes the investment financially attractive.
