An Analysis of Marketing Communications Tools Used by Venture Capital Essay

An Analysis of Marketing Communications Tools Used by Venture Capital Investment funds to attract Investors and Gain their Trust - Essay Example This research will begin with the statement that Venture Capital funds are attracting cash from all over the world to fuel the organic growth of the â€Å"new economy†. The new economy may be defined as an economy characterized by the absence of business cycles or inflations. The new economy usually has an accelerated rate of productivity growth. Industries such as the software industry and e-commerce characterize the new economy. It is the most trending financial services area with huge external interest caused by the recent Silicon Valley IPO(Initial Public Offering) success. Due to the fact that financial services Industry is relatively new Context for academic marketing literature, this dissertation will investigate current and potential utilization of marketing communication strategies that are or could be applied by Venture Capital (VC) Investment funds to attract investors and gain trust in their brand. Marco factors in the background of this research make this case par ticularly interesting. Post credit crisis effects on the financial industry, current global sovereign debt crisis, consumer skepticism, have external, negative impact on trust in the industry. Lerner contends that â€Å" financial crisis appears to have had a substantial negative effect on investors’ willingness to finance innovative entrepreneurship†. However, is it always the case? Most recent 2011private equity sector successes and boom in Venture Capital (VC) investments demonstrate that this sector is somewhat different and despite the economic crisis, money from institutional and private wealth is flowing into these funds with the expectation of high-risk – high-return. Not just high-risk, on top of that, in comparison to traditional Hedge funds, VC funds are perceived as being less transparent and even sometimes associated with money laundering. Hedge fund manager presenting in front of the panel of investors would normally quantify the nature of investme nt strategy.