VENTURE CAPITAL. Venture Capital- Basics. Starting and growing a business always require capital.
'providing seed, start-up and first stage financing' and also 'funding the expansion of companies that have already demonstrated their business potential but do not yet have access to the public securities market or to credit oriented institutional funding sources’.
(i) has a dedicated pool of capital raised in a manner specified in the regulations and
(ii) invests in venture capital undertakings (VCUs) in accordance with these regulations.
- American research and Development Corporation
- J H Whitney & Company
In exchange for the high risk that venture capitalists assume by investing in smaller and less mature companies, venture capitalists usually get significant control over company decisions, in addition to a significant portion of the company's ownership (and consequently value).
Young companies wishing to raise venture capital require a combination of extremely rare yet sought after qualities, such as innovative technology, potential for rapid growth, a well-developed business model, and an impressive management team.