Venture Capital - Introduction
What the Venture Capital?
Venture capital (VC) is invested by professional financiers to emerging and rapidly developing, and has great competitive potential of enterprises in a kind of equity capital. From the perspective of investment behavior, risk investment bears the risk of failure of capital to invest in high-tech research and development of the area and its products aimed at high-tech achievements as soon as possible to promote the commercialization, industrialization, in order to obtain a high capital gains investment process. From the works of view, is the talent management by professional investment intermediaries under the potential to be particularly high-tech businesses to invest in venture capital process, and also the coordination of venture capitalists, technology experts, investor relations, benefit-sharing, risk sharing an investment.
Venture Capital - the mode of operation Venture Capital
venture capital funds generally adopted manner.
Venture capital funds in the legal structure is to take the form of limited partnerships, and venture capital companies, as general partner to manage the Fund's investment operations and receive overtime pay. In the United States to take the risk of a limited partnership investment funds, get tax concessions, the Government in this way to encourage venture investment.
Venture Capital - 6 elements
Venture capital, venture investors, investment targets, investment horizon, investment objectives and investment constitute the six elements of venture capital.
, venture capital Venture capital is provided by professional investors and have a great appreciation of the rapid growth potential for a capital start-up companies. Venture capital through the purchase of equity, loans or both to buy stake in the form of loans also provides access to these enterprises. Sources of venture capital due to due to country-specific. In the United States in 1978, total venture capital financing of individuals and families accounted for 32%;
Followed by foreign funds, accounting for 18%; re-insurance companies funds, pension funds and large industrial companies, accounting for 16%, 15% and 10%, to 1988, the proportion of rapidly rising pension, accounting for 46% of total venture capital , followed by foreign funds, donations and public funds, and large companies fund industry, accounting for 14%, 12% and 11%, personal and family funds to account for a substantial proportion of drop only to 8%. Unlike the U.S., European countries, venture capital mainly from banks, insurance companies and pensions, respectively, the total venture capital for 31%, 14% and 13%, of which banks are the main source of venture capital in Europe, while individuals and families funds account for only 2%. In Japan, venture capital, as long as financial institutions and large companies from financial, accounting for 36% and 37%. Followed by foreign funds and securities company funds, each with 10 percent, while personal and family funds are only up to 7%. According to sub-investment, venture capital funds and direct investment is divided into two types of guarantee funds. The first is a way to enter the purchase of equity invested enterprises, mostly for private capital; while the latter in order to provide funding by way of security for the invested enterprises to help, and the mostly government funds.
Second, venture capitalist Venture capitalist can be roughly divided into the following four categories:
▲ A venture capitalists. They want to invest in other entrepreneurs, entrepreneurs, investors and other risks, they through the investment profit. But the difference is that venture capitalists are cast out of all of the capital all the property of their own, rather than entrusted to the management of capital.
▲ B venture capital firm. Types of venture capital companies there are many, but most companies through venture capital funds to invest in these funds generally limited partnership as a form of organization.
▲ C Industries subsidiary investment company. Such investment companies are often a number of non-financial industrial company under the independent venture capital firms, they represent the interests of the parent company to invest. Such Venture capital investors typically will mainly invest in specific industries. Like traditional venture capital, industrial investment company subsidiaries are also being invested enterprises must submit an assessment of investment proposals, in-depth company for due diligence and look forward to receive higher returns.
▲ D angel investors. Such investors typically invest in very young companies to help these companies a quick start. In the field of venture capital, "angel investors" the term refers to the first batch of entrepreneurs, investors, these investments were in the company's products and business put money into it before shaping. Third, investment purposes Although venture capital is an equity investment, but investment objective is not to obtain ownership of the business, not for holding, and certainly not to running the business, but by investing and providing value-added services to enterprises to make large investments, and then through a public offering ( IPO), mergers and acquisitions or other means to withdraw, in the property rights movement to achieve return on investment. Fourth, investment horizon Venture capitalist to help businesses grow, but they ultimately seek the withdrawal of channels will be invested in order to achieve proliferation. Venture capital has been invested enterprises from input to play until the withdrawal of investment by the length of time interval is called venture capital investment period. As an equity investment, venture capital over an extended period. Among them, Start-up venture capital usually 7 to 10 years, entered the mature stage, while the follow-up investments are mostly only a few years time.
5, investment target Venture capital industries are mainly high-tech industries. In the United States in 1992 on the computer and software accounted for 27%; followed by the health care industry, accounting for 17%; again is a communications industry, accounting for 14%; bio-tech industry accounted for 10%.
6, investment From the nature of the investment perspective, venture capital in three ways:
First, direct investment. But rather to provide loans or loan guarantees. 3 is to provide part of the loan or guarantee funds to invest at the same time as part of venture capital invested enterprises to purchase shares. But no matter what kind of investment, venture investors are generally included to provide value-added services. Venture Capital There are two different mode of entry. The first is the venture capital investment has been invested enterprises in stages, this situation is more common, not only can reduce the investment risk, and it helps to accelerate cash flow; the second is a one-time investment. This approach is not common, generally venture capitalists and angel investors may take this approach, one input, it's hard not the original follow-up financial support.
More informations about Venture Capital:
Venture Capital -VC Introduction===>
Venture capitalist Venture capitalist can be roughly divided into the following four categories==>
Venture Capital investment in three major new trend in the United States==>
What is a Venture Firm? ===>
