Answer Happy

nained earnings are invested in the assets of the firm and belong to the CUE BALL: IN IT FOR THE LONG HAUL oston-based Cue Ball Group is not your capital and long-term success. Many venture capital firms invest in a portfolio of companies invests in startups that prioritize human capi- for a specified period of time before buying tal over fast financial growth. Founded in or selling them. However, Cue Ball invests 2005 by entrepreneurs Richard Harrington, without setting a timeline because it feels that Mats Lederhausen, John Hamel, and Tony a long-term approach will pay off much more Tjan. Cue Ball was founded to support com than quick profits. Thus far, this long-term panies that it believes have the potential to view has had a positive impact on both Cue revolutionize their industries Ball's financials and reputation. The firm has As aventure capital firm, Cue Ball provides approximately $200 million in revenue and has been named one of Forbes' best small private equity to startups. The 21 startups in its portfolio share Cue Ball's values for human companies in America. Discussion Questions 1. How has Cue Ball carved a niche for itself in the venture capital industry 2. Why do you think Cue Ball wants to invest Infirms with similar values to its own! 3. Do you believe that an emphasis on human capital and a long-term investment approach is the best approach for Cue Bain to take from a financial perspective CHAPTER 16 Financial Management and Securities Markets 309