Business Angels - Venture Capital Funds

VENTURE CAPITAL FUNDS

Venture capital funds are a closed type of funds, in which banks, pension and other institutions as well as rich individuals, who wish to refine their assets and expect higher profits, invest. The name venture capital derives from the investment policy of the funds, which tells them to invest into small and middle-sized companies with high-growth potential.

Venture capital funds usually invest from 0,5 million to several million euros, each of them also has its own investment policy, into which branches to invest, into which specific companies to invest (growth phase, profits, etc.) and such.

Aside the money invested into the companies funds also have other added values for the company. When they enter into a company, they often help the entrepreneur with financial and legal knowledge, their network of professionals and other individuals, who can help the company grow.
What is of essential importance with these funds is also, that they have a clear exit strategy for the fund to exit ownership from the start. The entrepreneur or the management can buy their share, they can exit on the stock exchange or sell their share to a strategic partner.