Venture Capital For Electronic Commerce Businesses

Venture capital is required for start-up companies prior to the initial public offering or the sale of the company’s stock to the public. How these funds will be raised and what type of business entity is determined will be key consideration for the formation of the Internet business. Ultimately the venture capital will be used to provide equity for the initial public offering.

The following questions have been addressed in this article:

How should a venture capital business be valued?
What are the different types of business entities?
How is the type of business entity determined?
Should a lawyer be able to have stock in lieu of payment of legal fees?


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