![]() ![]() It refers to capital investment, both equity and debt, which carries substantial risk and uncertainties.It is developed as a result of the need to provide non-conventional, risky finance to new ventures based on innovative entrepreneurship.Venture capital is an investment in the form of equity, quasi-equity and sometimes debt - straight or conditional, made in new or untried concepts, promoted by a technically or professionally qualified entrepreneur.The venture capital investment helps for the growth of innovative entrepreneurships.IT,Bio Technology, infrastructure, health/life sciences, clean technology, etc.). Venture Capital firms invest funds on a professional basis, often focusing on a limited sector of specialization (eg.Venture capital is a means of equity financing for rapidly-growing private companies. ![]() Venture capital is most attractive for new companies with limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering.In such a scenario, VC investors play a pivot role in investing in unfinanced areas to promote new ventures.New companies or ventures that have a limited operating history and hence may find it difficult to raise funds through an equity or debt offering.Finance may be required for the start-up, development/expansion or purchase of a company.These include the owner or proprietor’s own capital, arranging debt finance, or seeking an equity partner, as is the case with private equity and venture capital. There are a number of alternative methods to fund growth. ![]()
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