The founder, CEO, and chief investment officer of the Boston-based investment firm Granite Point Capital, Warren Lammert draws on 30 years of experience. In addition to his work at Granite Point Capital, Warren Lammert possesses an interest in a wide range of financial topics that include venture capital.
Venture capital serves an important role in the economy. When a new technology, product, or service is developed, its creators often have few institutional funding options. Since the risks inherent in startups would demand higher interest rates on bank loans than is allowed by law, the only other option for traditional bankers would be to seek hard assets as collateral to secure the debt.
Since few startups have hard assets, venture capital fills the void. In order for venture capital investors to be successful, they must earn a sufficient return on their capital investment. This incentive helps venture capitalists to attract private equity funds to fund high-quality ideas.
Venture capital serves an important role in the economy. When a new technology, product, or service is developed, its creators often have few institutional funding options. Since the risks inherent in startups would demand higher interest rates on bank loans than is allowed by law, the only other option for traditional bankers would be to seek hard assets as collateral to secure the debt.
Since few startups have hard assets, venture capital fills the void. In order for venture capital investors to be successful, they must earn a sufficient return on their capital investment. This incentive helps venture capitalists to attract private equity funds to fund high-quality ideas.
