What is Venture Capital?
Venture capital is a form of private equity investment that guarantees high potential returns in the long-run. Private equity investments are not traded on public exchanges, such as the New York Stock Exchange. Individual and institutional investors alike usually invest in private equity through limited partnerships. This preserves limited liability, which means these investors aren’t personally responsible for debts of the business, and their personal assets such as cars and houses are safe and secure.
Venture capital funds are similar to private equity funds. The portfolio of companies invested in usually falls within the same industry to specialization, for example, a venture capital fund specializing in the healthcare industry may have a diverse portfolio of healthcare businesses and companies.
If you’re interested in partnering with us to get involved in venture capital, look at our Venture Capital Page *insert a link to page* for more information about the concept, our services, methods, and our team.
Characteristics of a Venture Capital
There are many benefits to investing in a venture capital fund, one of them being long-term investment horizons that provide a large return. Due to the long-time horizon, which can be around 10 years, the time lag increases liquidity risk and to make up for it, there are very high returns offered. If you’re willing to wait for the returns and can plan for the future, a venture capital investment is a great way to invest and highly recommended for those looking to increase gains.
Another characteristic of venture capital funds is the discrepancy, or gap, between private valuation and public (or market) valuation. Since VC (venture capital) funds are held privately, there is no absolute way for any individual investor in the market to determine the value of the investment. The fund may also not understand how the market values it’s investments. This can be a benefit or a drawback, depending on if the investments are overvalued or undervalued.
Our Venture Capital Services
Whether you’re an individual, small business, or large corporation, we can assist you in your investing and venture capital needs. We provide funding to new businesses that don’t have access to stock markets and don’t have enough cash flow to take on debt. We understand that obtaining funds, especially as a startup, can be the most challenging part, which is why we make it our goal to help with this. We guarantee long-term returns and look for any way to assist you in your financial needs.
