Professional Documents
Culture Documents
Module 7
Venture Capital
Nature of Venture Capital
A long-term investment discipline, usually occurring over a five-year period. The equity pool is formed from the resources of wealthy limited partners. Found in:
Creation of early-stage companies. Expansion and revitalization of businesses. Financing of leveraged buyouts of existing divisions of major corporations or privately owned businesses.
Venture Capital
(cont.)
Venture-Capital Process
Objective of a venture-capital firm - Generation of long-term capital appreciation through debt and equity investments. Criteria for committing to venture:
Strong management team. A unique product and/or market opportunity. Business opportunity must show significant capital appreciation.
Venture Capital
(cont.)