Venture Capital

Dare to venture capital – to help to win In venture capital, also called risk capital is spoken in the financial world, means when it comes to financing young, future-oriented companies (also known as start-ups) is that in its initial phase (the concept phase are) and not are listed. This type of funding runs) under the umbrella term “private equity” (German “private equity. Accordingly, the venture capital from private and institutional investors are not made available. The characteristics of the financing through venture capital are the characteristics of closed-end fund equal. The private investor who will invest on venture capital in innovative companies, thereby leading to active members of each company and is therefore very keen that increased the company value. Besides the chance of success and profitability of any private investor contributes equally with the additional running costs and the risks of the company. It is not so hot for nothing, who dares not, can alsonot win! The involvement of venture capital has the following features: * Closed Circle Investors * Default minimum sums * Above-average profits (returns) between 15% and 25% * Maximum participation of the individual investor at 50% * Fixed maturities 2 to 5 years, but also longer an exit before the end of the term is usually difficult and only possible as an exception, but any losses are to be accepted too. At maturity, the investors, the capital repayment, together with waves generated profit, the disinvestment. This will be achieved in different ways, namely as follows: the start-up companies to go public * * new investors buy the shares of the old investors * The startup company is sold (liquidated) * the owner of the startup company buys the shares of investors Author Michael Ambros