RelateIQ's Prospects as a Venture - Coursework Example

As a start-up venture business, the company should have the services of financial strategists and marketing advisors. The services of investment bankers and corporate therapists are imperative in enhancing efficiency in its management. For the next five years, the company’s venture fund should be equivalent to $ 125 million in its first venture capital. Its first investors’ contribution should be equivalent to $ 42.5 million. It can have start-up capital held in stakes.

In the beginning, the company will face restrictions in investments in conformity with regulations set by the Securities Exchange Commission (SEC). Other fundraising activities will be subject to regulations by the SEC.

Potential areas to invest The Venture Capital (VC) for RelateIQ
The most viable areas for investment include cyber security and education technology ventures that will have high returns. Potential sectors of investments include digital media the healthcare sector. Software and advertising are potential sectors that are likely to bring high returns to the company.

Investment in E-Commerce
Investment in e-commerce is important for a company to invest its venture capital. Expansion of E-commerce is extensive and inclusive of a great volume of online businesses (International Business Promotion, Inc, 194). The E-Commerce sector is highly profitable as an avenue for investment in the next five years. Trade-in vital products such as electronics and books are viable investment ventures that the company should consider. Investment in digital content includes exploiting opportunities in the market of e-books and other online products.

Investment in Digital Media
Litan identifies digital data as an area of potential investment opportunities in America in the 21st century (167). The company can opt to invest its venture capital in digital media including advertising revenue. Investment in avenues of online advertising is a viable opportunity to utilize the company’s venture capital. Innovative products are highly essential in enhancing innovation that provides solutions in reducing online search traffic.

Investments in Big Data
The company may venture into big data business avenues through improvement in technology. It can devise solutions to help businesses reduce the costs of information storage and improve efficiency. The business can put its venture capital in services that improve business operations to analyze accurate data and capitalize on opportunities by maximizing profits. Growth in big data investment renders the sector viable for high returns that warrant investments (Executive Office of the President 309).

Investment in Health Care and Health IT
The health care industry has diverse avenues of investment opportunities that are viable for investment (Vilsack 33). With the recent reforms in the health care sector, investment in health IT presents a valuable opportunity for most companies. The company, over the next five years, can consider investing its venture capital in the health care sector and enhancing the use of IT. Read More