Venture Capital Companies

Capital will become redundant, or is about to stop being a "resource." The capital is important as a factor of production, but is no longer a controlling factor. Peter Drucker

Students of market behavior and those related to investments, taking advantage of opportunities, benefits that can be generated in emerging markets and where to venture into this, can not ignore it now accounts for about venture capital and .

About it, gives us bancafacil.cl that venture capital is a form of finance companies that are growing and have no historical records to rely on their results or be sure to receive returns on the money you provided.

For this reason, investors who put their money into venture capital funds seek companies that can grow rapidly and have innovative business models (thus ensuring a good performance once they start work) and, also are at an early stage of development. When a venture fund invests in a company becomes part owner or shareholder of it.

Editum org. Says in this regard that venture capital has to do with some capital to invest temporarily in companies that are not financial in nature or property and requiring the participation of such capital to increase its value. Once the investment matured and achieved the goal of the company, the venture capitalist is removed obtaining their capital plus some dividends.

However, note that the concept of "venture capital" differs somewhat between the Hispanic world and the Anglo world. In the Spanish speaking world, this concept refers to entities that perform activities related to risk capital, while for whites it makes the difference between the organizations whose activities are based in developing projects for companies that are in their early stages, called "venture capital" or "venture capital", and the entities that invest in companies previously consolidated. This capital is called "equity" or "private equity" rather than venture capital.

Wikipedia tells us about the subject, it is considered that the venture capital companies are financial institutions whose main purpose is taking temporary stakes in the equity of unlisted companies, are generally not of a non-financial and real estate. The venture capital entities can take temporary stakes in the capital of companies listed on stock exchanges as long as such companies are delisted within twelve months following the decision of participation. An example of this type of investment the company has been on Twitter by venture capital.

The aim is that with the help of venture capital, the company will increase its value and investment once matured, the capitalist is removed at a profit.

The venture investor seeks to take shares in companies belonging to dynamic sectors of the economy, which are expected to have an above-average growth. Once the company's value has increased enough, hedge funds are withdrawn from the consolidated business profitability. The main exit strategies that arise for an investment of this type are:

Selling to an investor estratégico.IPO (IPO) of shares of stock compañía.Recompra by the empresa.En recent years has also been very frequent sale to another private equity firm.

Assessing operational risk capital business plan projects presented to them by entrepreneurs Investment Committees, which examine the advisability of entering the shareholders of these companies.

We also added that the VC can serve as a tool of economic development, supporting start-up ventures and smaller companies trying to grow. But instead of focusing on the element of risk attached to this type of investment, should focus more on its catalytic role as venture capital. In Latin American and Caribbean countries with less developed financial sectors, venture capital plays a key role in facilitating access to financing for small and medium enterprises (SMEs), to stimulate an entrepreneurial culture, create jobs and improve corporate governance and accounting standards companies.

Very important is to take into consideration what adds the source indicated that providing support for the venture capital funds in the countries in the region can bring a range of benefits, including financial literacy and marketing of new investors, and patent protection may be helpful for business during the critical years of growth and expansion. What is clear is that promoting this industry, a set of other actions begins to unfold: support for entrepreneurs, improved legal and regulatory environment, improved business climate, development of capital markets, among many other advantages.

The emphasis is to point out that giving support to venture capital funds in the countries in the region can bring a range of benefits, including financial literacy and marketing of new investors, patent protection can be helpful in business during the critical years of growth and expansion. What is clear is that promoting this industry, a set of other actions begins to unfold: support for entrepreneurs, improved legal and regulatory environment, improved business climate, development of capital markets, among many other advantages.

Do not forget, that venture capital funds, channeled large sums of money into new businesses at high risk and high profitability, by providing a new generation of entrepreneurs enough money to deal with existing businesses. This makes venture capital a fundamental mechanism to finance innovation, which channels much of the funds invested in new businesses in sectors such as software, telecommunications, internet, biotechnology, nanotechnology and renewable energy.

It is for this reason and with the expectations generated by the New Economy firms in the industry succeeded in attracting a significant amount of venture capital. This model is the one that allowed Netscape, Amazon and other companies to challenge established strong as Microsofty Barnes & Noble, etc.. Without this ability to fund new and innovative forms of business, all the information revolution would have occurred much more slowly.

It is known that there are different types of venture investors, who have performed at start-ups in the New Economy:

Seed: Small venture capital used to "germinate" an innovative project since its inception. Very elevado.Venture Risk Capital: Venture capital to be contributed in the early stages of development of a venture. They seek a return of around 50%, with a maturity of 5 to 7 years.

Finally, consider what comments editum.org that within the world of venture capital investments, there are several recognized and different kinds of operations. We refer to investments in consolidated companies, or "private equity". One of the most important is the purchase of a company from it or its assets. This acquisition is performed by some of the executives working on it with the help of a venture capital investment in English this is known by the name of "Management Buy Out" or MBO.

Duly noted sources Graduate Teaching Quality management and productivity? Faces graduate area of ​​University of Carabobo, marketing ExatecCátedra dinámicocarmorvane@gmail.com





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