06-09-2017, 11:18 AM
Venture capital is a form of "venture capital". In other words, the capital invested in a business where there is a substantial element of risk related to the future creation of profits and cash flows. Venture capital is invested as equity rather than as a loan and the investor requires a higher "rate of return" to compensate for its risk.
Venture Capital provides long-term, committed capital to help non-listed companies grow and succeed. If an entrepreneur is looking to start, expand, buy a business, buy a company in which he works, reverse or revitalize a company, venture capital could help do this. Obtaining venture capital is substantially different from raising debt or a loan from a lender. Lenders have a legal right to a loan interest and repayment of capital, regardless of success or failure of a business. As a shareholder, the profitability of venture capital depends on the growth and profitability of the business. This return is usually earned when the venture capitalist "sells" by selling his shareholding in the business.
Venture Capital provides long-term, committed capital to help non-listed companies grow and succeed. If an entrepreneur is looking to start, expand, buy a business, buy a company in which he works, reverse or revitalize a company, venture capital could help do this. Obtaining venture capital is substantially different from raising debt or a loan from a lender. Lenders have a legal right to a loan interest and repayment of capital, regardless of success or failure of a business. As a shareholder, the profitability of venture capital depends on the growth and profitability of the business. This return is usually earned when the venture capitalist "sells" by selling his shareholding in the business.