every entrepreneur is familiar with a term such as venture capital.It is a means of investing in the Fund of various companies with a view to expansion or improvement.Venture capital can significantly increase the value of the enterprise in the market, which can not but affect its prestige.
This method of business financing has significant advantages.For example, in contrast to bank loans, it is not necessary to return and certainly do not need to pay interest on the loan.This in turn reduces the risk of bankruptcy of the organization in the event of the failure of the planned business.This type of investment is strictly imposes full responsibility on the owners of the firm, and is distributed among all the shareholders of the risk.
course, the capitalist performing venture capital investment, is not without its benefits.He owns a certain percentage of the profits, and entitled to remuneration as a thank you for their help in the development of core business.In practice, venture capital is often invested in a start-up fund promising projects or direct expansion of successful and well-functioning institutions.As a rule, the investment is carried out for a period of at least five years.
Any provision of funds should be documented.The venture capital financing used convertible securities, especially those of their species, like stocks and bonds, IOUs.The main task of the investor is to increase his available capital at the expense of long-term financing of companies.To achieve the main goal of its activity is aimed, the essence of which lies in the choice of a competent facility.Most capitalists investing venture capital, does not plan to interfere in the affairs of the company and to put forward their own ideas, though, and are members of the Board of Directors.Their powers are limited to the financial support of the project.
For the investor is considered to be most important when selecting a specific object investment.It's a long-term form of financing, and for long-term cooperation and strong alliance parties need to fully trust business leaders.If the capitalist completely confident that management team will make every effort to achieve positive results, then it will not have complaints or other issues.Ideally, the entrepreneur and the investor relations should be respectful and open.The Head can honestly tell you about problems or temporary difficulties, and freely discuss the plans for the near future.
Before you invest in a new company, should carefully examine the relationship of the partners, the atmosphere in the team.It is important to find out how strong the belief of all employees in the success, because it depends on how big of an incentive to work, and hence the success of the case.On the stage of the company requires constant monitoring, therefore, the head will have to conduct a lot of time at work.That is why knowledgeable investors before the signing of a cooperation agreement to invite to dinner the family of the owner, in order to assess how harmonious relations between spouses.Do not be surprised, this is really a very important factor affecting the efficiency of the control of the governing apparatus.
Venture business in Russia is in its infancy.The Government has made a lot of effort for the development of this area.However, the level of distrust to the long-term financing in the country is quite high, so it will be extremely difficult to convince the capitalists in reverse.
