According to Hoffmann and Donald (1993), venture capital is a risky type of private equity because the new hotel may have a higher failure rate, but investors will benefit from the highest return on capital gains on sales of the new hotel. Alex and Will need to be well prepared before meeting their investors and presenting them with a good business proposal. According to Gonnerman (1984), an investor wants to look for a business idea that can return at least double the amount of his investment in three years. Developing the business concept is therefore a difficult task.