Venture (translated to English - venture) - an investment company whose activities are connected exclusively with innovative projects (startups).Investing venture funds made in securities companies with a sufficiently high degree of risk in order to obtain in the near future very high incomes.
Typically, venture capital is a matter of recent scientific developments and technologies.According to statistics, about 70-80% of these investments do not bring returns, but 20-30% of the successful projects cover all incurred losses and bring profit to investors.
Venture financing is aimed at investing in venture companies, which are small businesses, taking for experimental development and knowledge-based work, are preparing a framework for the implementation of venture projects.
ventures are internal and external.Internal Venture organizes the authors ideas with venture capitalists.Outside venture raises funds for their projects through special funds and funds of other investors.
Venture financing is a risky business, aimed at the use of technology and technological innovation and advances in science, it has not been used in practice.This type of financing is associated with a serious risk of non-receipt of revenues resulting investment may remain uncovered.
Venture Financing used for projects , the implementation of which is impossible to obtain funds in the form of a bank loan or other conventional sources of funding.
Today, there is the concept of a business venture.It means a business that focuses on the use of the new developments that are only planned to be implemented in practice.Under the venture capital in this case refers to long-term investments in securities and risky ventures which is invested based on a quick profit.
Venture operations focused on lending to and investing in the latest inventions and developments.For such operations, characterized by increased risk.Especially for lending to risky projects are venture banks.In the case of successful projects such banks receive a share of the income share of the profits from the successful implementation of development or innovation.
main objective of the venture investor is putting money into the most promising business for big profits by selling its stake in the company.To do
venture capital can from different sources: from large companies, state banks or specialized funds. venture financing in Russia often carry large companies, which are available free funds.To date, the country has increased the share of venture capital investment by the state.Specialized funds have appeared in many regions of Russia.The activities of private funds is severely limited.Banks generally do not risk to invest in risky projects.
Searching for the project to invest in the venture emphasis is not on the invention itself, or innovation, and especially dealing with entrepreneurship inventor.Therefore, when choosing a project of great importance competent business plan.
After selecting the project, the company, which is expected to pour in venture financing, is being reviewed.Only after that sign contracts and carried out the investment process.In the future, the investor receives the right to some control over the company and the impact on the processes occurring in it.
