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Venture capitalists might be few and far between, according to the latest venture trends, but now is the perfect time for venture capitalists to fund software companies and software companies to seek venture capitalists on their prepaid cell phones or other cellular devices. Probably because of the recession and the fact that fewer banks are handing loans to new entrepreneurs, large companies are funding venture capital to smaller companies. They do so, because they feel they can help them increase their profit margins. Companies like Citigroup and BMW have recently opened Venture Companies that fund mobile phone apps.

Although venture capital helps high-potential new companies gain recognition and profit quickly, the ethical concerns of larger companies using these apps to help their business grow. These larger businesses, for the most part, seem to set pretty selfish goals that might put their name out there in a bad way. You can look at this from two perspectives. Coming from a more positive perspective: the Venture capitalist and smaller company have the opportunity to naturally participate in co-op advertising/marketing, without much work. However, the intention for building the partnership needs to be ethical and honest.

For instance, with the recent BMW Venture, they have set aside capital to support a driving app that helps people get directions. At the bottom of the app, it has the BMW logo advertising on it. Not only does BMW have to make sure that the app company cannot hurt their business reputation, but they need to make sure that they actually support the business on all fronts.

The negative perspective of venture capital would show dirty, greedy big conglomerations giving funding to any company that could help them make a buck or two. And that’s the time of business transactions that scare me.

While business capital venture continues to decline, probably because of the uncertainty of the our economic times, over a quarter of last year’s venture capital went to support those companies dealing with technology and advertising. The three top states include Massachusetts, New York, and California, which shows that eventually the market will begin to increase again.

The question becomes what can small business do to protect themselves from making deals with unethical venture capitalists? How can larger businesses make sure they are acting socially responsible in venture dealings, while still making a profit? Both small and large businesses need to make sure their partnership is more than just about making money, but that they can both agree there are other assets to forming their business

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