NAF Win Global Finance covered the topic of “Venture Capital” in the weekly campaign. Various viewpoints of this topic were covered which, includes the following:
What is Venture Capital?
Venture capital (VC) may be a sort of private equity financing that investors provide to startup companies and little businesses that are believed to possess long-term growth potential. Venture capital generally comes from well-off investors, investment banks, and therefore the other financial institutions.
Those people who invest their money in this type of capital are known as venture capitalist. This type of venture capital investment is formed when a speculator buys shares of such a corporation and becomes a financial partner within the business.
Features of Venture Capital
Methods of Venture Capital Financing
- Equity- generally not exceed 49%. Retained till the projects make profit
- Participating debentures- lower interest till the unit makes profit. Paid back as per predetermined schedule
- Conditional loan- both interest and royalty
How it Works ?
Process of Venture Capital
This process of V.C. mainly involves six steps which are as follow;
Types of Venture capital
A) Early Stage Financing:
Early stage financing has three sub divisions;
B) Expansion Financing:
Expansion financing may be categorized into
C) Acquisition / Buyout