Raising Venture Capital Fund towards new start-up small businesses and new development projects has become a necessity driven by lack of sufficient funds to establish unquoted companies in the market. Fortunately for start-Up small businesses and new development projects in South Africa today, raising Venture Capital funding has become easy and available to all new start-up small businesses and new development projects showing possibilities for increasing growth and potential for high profitability.
Venture Capital Funding Venture Capital Funding ? What Is It? Venture Capital funding is the process of providing finance to start-up companies, or businesses planning expansion, by a group of high net worth individuals, or institutions, who are in possession of great amounts of ready capital. Investments are made through venture capital (VC) firms in return for company shares, and promise of substantial gain on invested capital. Venture capital funding is provided to only selected projects, typically ventures that are capable of giving good returns on investments and those that clarify an exit event after a period of 3 to 7 years. High growth potential companies are likely to attract venture capital funding more than companies without any well-defined plan for expansion. Owing to various other factors as well, venture capitalists may ultimately invest in only one out of 400 venture projects. Venture Capital Firms Most companies, when they start, do not have sufficient capital to fund their businesses. Their limited operating history, insufficient market experience and small capacity causes most capital investors in public markets and banks to reject applications for funds and loans. Excluding options like personal savings and business profits to launch businesses, most company owners turn to venture capital firms to meet their investment requirements. What are Venture Capital Firms? Venture capital firms are made up of venture capitalists, or venture capital investors (also general partners of the venture capital firms), who are typically a wealthy group of investors or an institution in possession of large amounts of capital. This capital is available from private or state pension funds, mutual funds, insurance companies, financial endowments from universities, foundations, etc, and is reserved for small business ventures that show promise of growth and high returns on investment within five to seven years. Venture Capital Trusts Venture Capital Trusts ? What Are They? Venture capital trusts or VCTs are exceedingly tax-efficient closed-end composite investment schemes in the United Kingdom. Venture capital trusts were first introduced by the Finance Act of 1995 by the UK Conservative Government. Similar to investment trusts and registered with the London Stock Exchange (LSE), Venture capital trusts provide investments to companies which are not listed with the LSE. Venture capital trusts are a type of public-traded private equity, providing finance capital to small, unquoted companies with expansion potential, and are designed for capital gains for investors. Venture capital trusts encourage investors to indirectly fund risky trading businesses that function without registration of their shares and securities with the LSE. Therefore, individuals who invest in venture capital trusts, cause other companies to fall under the purview of investment risks. Having started on April 6, 1995, Venture capital trusts have proven less risky than were initially expected. VCTs can be compared to the United States? business development companies. Venture Capital Investment Most new and unquoted companies, in their early stages, fall short of sufficient capital and struggle to remain functional. They turn to capital investment support from outside investors until they can make profits. The demand for Venture Capital Investments has grown at an alarming rate in the last couple of years. The increasing trend for Venture Capital Investments has been fueled by factors like IPO market improvement, increase in availability of entrepreneurial talent, Venture Capital formations supported by Government policies, growth of cutting-edge technologies, etc. A combination of these factors, and several others, has caused Venture Capital investors to continue funding and supporting promising businesses. Venture Capital Investment ? What is it? A Venture Capital Investment is monetary assistance given to you and your company in the early stages of your business. Venture Capital Investments help successfully launch your business in the market. Venture Capital Investments provide your business with resources it needs, ensuring your business grows to its maximum potential. Whatever your demands - whether recruiting top-notch business talent, manual labourers, new and advanced machinery, or setting up of innovative technology - Venture Capital Investments assure allowances for all your business requirements. Venture Capital Investments are made by Venture Capital Firms in the form of cash in exchange for company shares the Firm is investing in. Holding company shares mean investors can exercise part-ownership in the company?s management. Wealthy individuals or Institutions with large quantities of available capital invest their money in Venture Capital Firms through funds organised as fixed-life partnerships. Partnerships are classified as General (Venture Capitalists) and Limited partnerships and usually last for 10 years. Venture Capital Investments are made towards companies with high growth potential within 5 to 7 years. How to apply and to Submit your Businesses Plan or Investment Proposal to Hundred Thousands of Potential Angel Investors, Venture Capital Investors, Private lenders and Private Equity Investors? Act now to get our FULL function with complete Angel Investors, Venture Capitalists, Private Investment Companies and Private Lenders Data base. For FREE Assessment, Quotation and Application Form. Send us your contact details, business profile, business executive summary or business plan via email to tryfinance@hotmail.com or fax us to 086 642 7944 or SMS us your contact details to +27 714040930
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