Okeechobee Chamber of Commerce
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Venture Capital Video
Posted on 02. Jul, 2011 by admin in Uncategorized
Investors in venture capital provide the capital…
their networks and experience in the creation and early development of business innovation or technology considered a high potential for development and return on investment . Among the recent successes of the best-known venture capital, one can for example include Google in the U.S. and Skype in Europe.
The term “risk” used in France has not always equivalent in other countries where one often uses the term opportunity (venture capital). In Canada, we use the term “venture capital” instead of “venture capital”. There still German “Risikokapital” Spanish “Capital riesgo”, Portuguese and Brazilian “Capital risco” … The French professionals have often sought other words, closer to the American translation through less emphasis on the risk of investment on expected profits, “Adventure Capital”, “Capital Growth” … These attempts at communication have sometimes ephemeral success, but only one deviation was given during regular use few years: the seed capital dedicated to business creation.
A venture capital fund must generate a return higher (compared to bank loans to businesses). The portfolio of this type of fund is composed of projects that fail as well as successful projects and thus offset the losses made on the first. Success through the resale of the company funded (in France called affiliate) to another company, or an IPO, for example on Alternext , or the Eurolist in Paris .
It is therefore understandable that the selection of projects (funding the best projects and avoid less promising prospects) is essential in this industry. This step inevitably requires an analysis of the development plan of the company (business plan). Investors are often willing to share the characteristics they use to evaluate projects financial one .
The French definition of venture capital includes sometimes wrongly LBO (leveraged buy out), which are buyouts leveraged (ie with a high proportion of debt compared to equity in development), then as the U.S. venture capital does not include the kind of activities. Edge with the development capital (minority investments in the capital of SMEs), however, is less clear.
Venture capital is characterized by a higher technological content and greater ability to finance losses to support the development of this technology. Her areas of interest were, until now, information technology and communication (ICT) and biotechnology. But in recent years (2004 in California, 2007 in France), venture capitalists are opening more and more technology for sustainable development ( Cleantech Greentech or), relying in particular on renewable energy.