Why is seed financing very risky

It only deals with pharmaceutical industries, one of the riskiest industries.

The managerial role is very high.

Not every idea can generate a marketable output.

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Because this activity occurs in the earliest stage of life of a company.

Because the PE can outsource this activity.

Because it is not a complicated activity for a PE.

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PE is a source of investment and governance.

PE is a source of capital gain and governance.

PE is a source of financing and investment.

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PIPE deals with a company whose shares are listed on a stock exchange.

PIPE only deals deals with a Public Admin.

In PIPE, the PEI has to replace an existing shareholder.

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A trade of assets

The PEI not finalizing the deal in the end

The PEI buying a valuable asset mandatorily together with other less valuable assets

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It’s the separation into two different deals deriving from two different ways of regulation.

It’s the separation into two different deals deriving from the fact that one occurs in the mature age and the other one occurs in the expansion.

It’s the separation into two different deals deriving from the fact that the Replacement financing occurs when the company is dead, whereas the Distressed Financing occurs in mature age.

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In order to sell the shares the investor bought back to the entrepreneur

In order to increase the IRR

In order to enhance the chances of success

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Giving strong support to manage strategic decisions.

Being ready to even create a market for the output generated by the VBC.

Giving strong support to face risks linked to a fast process of growth.

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Why is seed financing very risky

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