What is a venture capital fund?
What will be an ideal response?
Venture capital (VC) is a sub-set of private equity.
VC funds specialise in private equity investments.
o Early stage businesses
o Entrepreneurs
o They are typically quite hands on
o Invest capital, services and time
VC funds provide enhanced access to investors to private equity.
o Available to more investors
o Can't invest in too many companies
VC works with the business to get it to exit.
o Takes the business through the whole process
o Exit strategy is typically through an IPO.
VC takes large fees.
o This is because it is risky and hands on
VC takes large ownership stakes.
VC is costly compared to traditional investments
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