Funding of Media Venture Essay Example | Topics and Well Written Essays - 3500 words

Funding of Media Venture - Essay Example It is the main concern of the following paper to discuss with examples of the key requirements for, and obstacles faced when, seeking funding for a media venture. For a media firm to be able to secure funding, one of the requirements in many cases is a business plan which contains a solid business concept. This is because the funding agencies like the donors, banks or sponsors expect a return out of the funds they invest in the media venture. For this reason, they believe that a media firm with a good business concept would be able to compete effectively with other media firms and in the end make profit. However, the media firms that do not have sound business concepts will in most cases find it hard to acquire funds because they are perceived to be risky businesses that may not compete effectively in the media industry. A good business concept in this case will include details of the winning product and services in form of quality advertisement and creative thinking by the media per sonnel especially the journalists, the presenters and writers. Hewlett-Packard Company for example required that those media companies that seek funding must first ensure that they have a sound business plan. Product viability is another key requirement that venture capitalists tend to look at before providing funding to the media firms. They first look at the probability of success of the product that the media wants to offer in the market. If they realize that the products that the media wants to offer have high chances of success, the funds will be provided with relative ease since they assume that their investments are not going to be put in a business that is too risky with limited chances of survival. Picard noted on the contrary that venture capitalists are in most cases reluctant to provide funds to media firms if they establish that the products on offer have very low chances of success2. Capital Threshold Most companies that provide funding to media ventures require that t he latter have a given amount as part of their financial base before they can be offered funds. This situation was witnessed when HP Company announced their funding program to internet startups in which they required interested media companies to have a financial base of $250000 in capital before they could be considered for funding3. This capital threshold is meant to indicate the seriousness of the media company. The capital base also ensures that the company can provide security to its customers and clients before the business can pick up. This means that those media companies that were seeking funding to venture into the internet services but lacked the stated amount could not get funds from Hewlett-Packard4. Compliance with Government Regulations Before the media venture can be provided with funding from outside sources, they are normally required to be in compliance with government regulations and policies5. This is to ensure that the business that is being financed is a legal entity and operates within the legal framework. The media ventures that comply with the government regulations show signs of seriousness in doing business as opposed to those that fail to comply. Those who provide funding to

Risk Management and Investment Essay Example | Topics and Well Written Essays - 3750 words - 1

Risk Management and Investment - Essay Example From the report, it is evident that the performance of the firm is better than the performance of other investment funds. Additionally, various risks come along the portfolios. Consequently, the recommendations reside on the basis that adding, modifying, and excluding some of the investment funds in the portfolio with improve the performance of portfolio. The investment portfolio is aimed at maximizing income located in the United Kingdom. The investment fund comprises of Greggs Plc., Tate & Lyle, Domino Printing Services, JD Sports Fashion PLC, Bellway PLC, William Hill PLC, Beazley PLC, RPC, Group PLC, Huntsworth Plc, CSR Plc., and cash worth 5 million pounds. From the stock 10 of them are securities and only one is 5 million pounds on deposit, which will earn, one per cent since the date inception (Markon 2010). The investment fund is a type of income whose main purpose is to maximize return with very low risk. Therefore, the investment fund needs to invest in securities having stable income like fixed income securities, blue chips, and deposit receipts. Although the growth of the securities is not stable, they are not exposed to various risks. The report discusses the past performance of the investment fund. Thereafter, the paper analyses the risk of the investment fund, which may hinder the fund from achieving income maximization (Fama 1970). Finally, the paper outline crucial and helpful recommendation for the investment portfolio to make sure that the aim of the fund is satisfied. Before the third section, it is assumed that the date of inception is 1st January 2012 and cut off date is 3rd Februrary. Secondly, the paper ignores the changes effect, inflation rate, trade cost, and commission, which the factors will be nil. Thereafter, the return of the investment fund will be lower that the return of the investment fund. Consequently, the inter-bank lending rate of one year represents FTSE