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Venture Capital
What is venture capital?
Venture Capital involves selling a stake in your business to a financial investor in return for a capital injection. It is a longer term investment than a loan and is generally only appropriate for businesses with reasonable growth potential.
By taking a stake in your business, the investor will expect to have some say in the way the business is run and to share in the profits and future value of the business as well. The investor will be seeking to make a profit on their investment by selling their stake in the business after between 5 and 7 years. Venture capital can be provided by a firm of venture capitalists or by an individual business angel.
This article based on information that is Crown Copyright © 2002
Labels: Finance & Grants
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