term "business venture" was the result of the translation of the English word "venture", which means venture or enterprise.This kind of business is focused on the use of new technologies and the results of scientific achievements in practice.
venture business as a form of investment in Russia began its development recently, but it has clearly identified the main players and the direction of development.It is mainly engaged in the transformation of scientific and technological achievements, from the initial idea to the introduction of this technology into mass production.
Features venture business
ventures is closely linked to innovation, but its activities necessarily involves innovative technologies.For example, this may be the implementation of the project venture into new markets.But at the same ideas and new inventions will remain unfulfilled without venture funding, as all activities related to innovation, is very risky.Only the organization of business venture allows investors to make a profit, much higher than the initial investment.
Unlike traditional activities
Venture business is primarily characterized by the fact that its funding is not guaranteed security.The necessary funds are available only for a promising idea.In this case, the guarantee is to specify in advance the percentage of shares of venture companies.
If things go well established company, then at some point the investor will be able to sell their shares and not just return on investment, but also get a very reasonable profit.If the project is a failure, then the investor can claim only to a certain portion of the assets of the company, according to its share in the authorized capital.
But do not think that investors will not take into account the business risk by financing venture projects.On the contrary, they are planning to get considerable profit from their investment, many times greater than the percentage of bank deposits.
course business venture involves a certain risk, but a reasonable investor would never invest in a losing venture.
Financing
investor financing venture project, does not count on a quick profit, the contract is a long-term basis.He plans to advance its withdrawal from the project.Therefore, the company should be prepared for such a development to withdrawal did not affect its operating and financial performance.
investor puts special demands on the team engaged in the project.It is often not so much money is allocated for an idea or a project, and more under specific people.
benefits of this project:
- Venture business helps to attract the necessary funds for the implementation of risky but promising projects when other sources of funding are not available.
- money allocated for the project without collateral.
- funding is made in a short time.
- This way of investing does not involve interest payments, dividends and so forth.
Disadvantages:
- very difficult to find and attract investors.
- investor must allocate the share capital.
- The investor may at any time withdraw from the project by selling its shares to a third party.
