Technology Venture Investing: Articles Review

Introduction

Venture business – investing, as a rule, in the form of equity capital, in fast-growing enterprises that demonstrate the potential, is one of the primary ways of implementing technological innovations. This type of entrepreneurship is a small extent, characteristic of the commercialization to research results in high-tech areas where prospects are not guaranteed, and there is a significant share of risk. The purpose of venture capital is to obtain a high return on investment, which investors receive in the vast majority of cases, not in the form of dividends, but the type of return on investment in the sale (Tayeh, et al, p. 130). The placement of venture capital precisely in particular small high-tech companies is dictated by the desire not only to obtain higher returns than investments.

Main body

The venture capitalist, directing the investment in a new small company, must decide in advance how he is going to exercise his right to profit. In other words, it must determine how to exit the investment at the end of the life cycle funded company (in 5-7 years) (Tayeh, et al, p. 130). Due to the novelty of some factors to market and consumer uncertainty, a new group risk arises the success of the project as a whole. A feature of high-tech solutions is that they are useful only when all the company’s business processes are focused on them. Since the decisive role in the success of an enterprise often belongs not so much to the idea underlying the product and technology as to the quality of enterprise management. The venture capitalist delves less into the intricacies of a scientific sense, preferring to conduct a detailed assessment of the potential capitalization of this idea and the organizational abilities of the head managerial staff of the company.

NBA star Steph Curry was investing in technology and introduced his new investment unit, SC30, which manages all of his freelance partnerships. The company officially opened in June 2018 and has since made eight investments, including SnapTravel, an assistant for hotel reservations using artificial intelligence. In the interview, Carry said: “Yes, we’ve made investments that are changing lives” (Parise, 2019). Moreover, former Nike CEO Bryant Barr is the current president of SC30.

The second article is about Former NBA superstar Kobe Bryant, who scores points as an investor preaching patience. About three years ago, Kobe joined the venture capital court as a co-founder of Bryant Stibel & Co. These funds have access to resources of more than $ 2 billion. Bryant told USA Today: “I understand the importance of building value and being smart with your finances” (Baig, 2019). The focus is on media technologies or private startups that cost more than $ 1 billion. In the interview, Brian Lee says: “Really just having the halo of Kobe Bryant attached to Art of Sport has opened doors across the board” (Baig, 2019). Although superstar athletes have well-known names, this does not mean that they are well versed in business, finance, and investment.

Conclusion

Having read and studied all the articles, I can analyze the text. The articles talk about two celebrities, Steph Curry and Kobe Bryant, who have invested in technological innovation. The photographs that appear on the interview pages are identical, capturing the stars during their basketball matches and the interview. The style of writing data for the interval is different, the conversation with Steph Curry is recorded in the transcript, but the interview with Kobe Bryant is presented in a short article.

References

Baig, Edward C. “Ex-NBA Superstar Kobe Bryant Scores Points as an Investor by Preaching Patience.USA Today, Gannett Satellite Information Network, 2019.

Tayeh, Mohammad, et al. “Accounting vs. Market-Based Measures of Firm Performance Related to Information Technology Investments.” International Review of Social Sciences and Humanities, vol. 9, no.1, 2015, pp. 129-145.

Paris, Martine. “Why NBA Star Steph Curry Is Investing in Tech.” VentureBeat, 2019. 

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