What is a venture capital fund?
A venture capital fund in the Greek legal sense is a closed-end fund operating in line with the provisions of Law 2992/2002. Such funds are managed by dedicated VC fund management firms. Fund capital is preferably invested in companies active in key “new economy” sectors such as telecommunications, IT, e-commerce, biotechnology, new materials, and in companies whose competitive advantage is founded on the application of technology.
Having your own business is one of the dreams and goals of the average person. Most of us would rather be our own boss than become someone else’s employee. Unfortunately, having your own business is not that easy. Money is difficult to earn and more difficult to find, well unless you are already well off. Starting your own business may take a lot of thinking, guts and money. Fortunately, new entrepreneurs have other options in finding funds for their business. A venture capital fund is private equity from outside investors. People who provide these funds are called venture capitalists. These are a group of wealthy investors, financial institutions and investment banks that can gather investments. They invest in new businesses that are still starting in the industry. In return, they get a portion of the equity and have a say in the company’s decisions. Business ventures. We often hear about business ventures from rich people. Most investors who have enough money will embark on a limited
Lets start with what VCs are and what they arent. Entrepreneurs often complain about VCs. One of the most common complaints is “VCs are supposed to like risk, but they are really only looking for the next Google and other sure bets.” Contrary to popular opinion, VCs are not wildeyed gamblers, nor do they particularly “like” risk. Part of the confusion here is local and comes from poor translation. In Hebrew, the term “venture capital” is hon sikun, which literally means “risk capital.” (A more literal translation into Hebrew would be hon yozma.) In other words, the emphasis needs to be on the venture rather than the risk. More…
Venture capital funds are pools of assets that are created by the involvement of multiple investors. Generally, a venture capital fund is created for the purpose of engaging in a specific business related project or enterprise. The exact structure of the pooled investment is determined by the entity that is seeking the funding for the project, including the projected return that each investor can anticipate.
