Often overlooked by small and medium businesses, venture capital remains a private source of funding available at all stages of business life.
Nearly 5000 companies are currently benefiting from capital investment in France. Yet entrepreneurs still reluctant to use them, for lack knowledge on these mechanisms or for fear of losing control of their business.
What is Private Equity? Is it the same thing as venture capital?
Yes, it does. Private equity can be invested mostly in four ways. One of them is Venture Capital. In this line, private equity can be invested on businesses that are starting, those that are mature, or those that are in trouble. Venture capital, growth capital, leveraged buyouts help companies during their cycle of life.
What is the attractive in investing on other businesses for a private equity investor?
During the life of a business, funding is needed to make the business flourish. Moving it forward at the beginning and developing it when it is mature. In any of those cases, private equity investments are a great relief to the finances of small business. The business owner does not need to ask for a credit and it can potentially attract more financing in the future.
Can the private equity investor become another partner?
Investors provide funding for the business but in most cases they have no interest of staying for more than it is necessary to get their profits back. The capital investor, as opposed to a regular investor, thinks about the future of the company rather than the about the short term.
Capital investors do not specify when they will leave the partnership or the company, but they stay no less than three years but no more than seven. They receive the value of their share just like any other shareholder but increase the value when they sell it. That is the ultimate goal of a venture capitalist for instance, selling his or her share and make a profit.
Nearly 5000 companies are currently benefiting from capital investment in France. Yet entrepreneurs still reluctant to use them, for lack knowledge on these mechanisms or for fear of losing control of their business.
What is Private Equity? Is it the same thing as venture capital?
Yes, it does. Private equity can be invested mostly in four ways. One of them is Venture Capital. In this line, private equity can be invested on businesses that are starting, those that are mature, or those that are in trouble. Venture capital, growth capital, leveraged buyouts help companies during their cycle of life.
What is the attractive in investing on other businesses for a private equity investor?
During the life of a business, funding is needed to make the business flourish. Moving it forward at the beginning and developing it when it is mature. In any of those cases, private equity investments are a great relief to the finances of small business. The business owner does not need to ask for a credit and it can potentially attract more financing in the future.
Can the private equity investor become another partner?
Investors provide funding for the business but in most cases they have no interest of staying for more than it is necessary to get their profits back. The capital investor, as opposed to a regular investor, thinks about the future of the company rather than the about the short term.
Capital investors do not specify when they will leave the partnership or the company, but they stay no less than three years but no more than seven. They receive the value of their share just like any other shareholder but increase the value when they sell it. That is the ultimate goal of a venture capitalist for instance, selling his or her share and make a profit.
About the Author:
Wade Henderson - recognized Professional - 15 yrs in the Business Finance Field - strong reputation for getting the deal done. IMMFinancial.com IMM Project Finance IMM Leasing You can get a unique content version of this article from the Uber Article Directory.
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