What are venture capital funds

Venture Funds - these are organizations that invest their financial capital in projects or any companies at the initial stage of their development and formation.It is important to note that not every such investments in the future turns out to be profitable.According to statistics, about 80% of all investments in practice are unprofitable.However, the remaining 20% ​​are so beneficial that completely cover the initial costs and bring weighty profits afterwards.

Venture Funds.History

This kind of business for the first time was finally formed in the US in the 1980s.Such innovations were primarily related to the scientific and technological progress, which in those days was dominated by the world, as well as the rapid development of the electronics.Around the mid-1980s in the United States, there were about 650 organizations of this kind of investment.Moreover, the governments of some states sought to help form a new steel companies and join the ranks of venture capitalists.According to experts, in 1987 venture capital funds have undergone the peak of its funding.The total investment is about 4.5 billion dollars.

Venture Funds today

At the moment, the so-called "Venturing" are increasingly using small projects called "start-up".Most often it is the small companies, the staff does not exceed 10 people at times.They come up with an idea and go with her to venture capital funds in the country.Then the experts decide and approve the application or, on the contrary, reject.In the first case the fund begins to fully finance the project.The market success of this type of small business in the first place is their rapid growth.After some time, a small startup can capture an impressive market share, for example, if the original idea was connected with the latest technology.On the other hand, as noted above, only a few of these survive on the market.Among the most famous and successful projects both experts call the "Apple", "Xerox" and "Intel".Judging by the success of these projects, it is possible to think that this kind of practice is really appropriate.

Russian Venture Funds

As for our country, the situation is not so optimistic.The thing is that Russian venture funds recently started their work (compared with the US).It is important to note that such an experience for our country is new, and only a few are willing to risk their investments.Despite the disappointing forecasts of experts, entrepreneurs are also trying to put their finances in startups.Probably in the near future the industry will get a new stage of development in our country.

Runa Capital

Runa Capital - is the most popular at the moment, the Russian venture fund.Its founder Serguei Beloussov has managed to bring to the world market brands such as Rolsen and Parallels.It is believed that the company has become a popular and quite successful only through a strong marketing component.The fund invests about $ 10 million, but its share subsequently is from 20 to 40%.