Features of Venture Capital investments
• High Risk
• Lack of Liquidity
• Long term horizon
• Equity support and capital additions
• Venture capital investments are made in imaginative projects
• Suppliers of venture capital partake in the administration of the organization
Explanation of Features of Venture Capital Investment
The following are the feature of venture capital.
1. It is basically financing of new associations which are suspecting that its difficult to go to the capital market at their starting time of the essence. This back can in like manner be credit based or in-convertible debentures with the objective that they pass on a settled yield for the providers of the venture capital.
2. The people who give venture capital go for capital increment in view of the accomplishment finished by the stress that acquires.
3. It is a whole deal venture and made in an organization which has high improvement potential. The course of action of the venture capital will bring quick improvement for the business.
4. The venture capital provider will in like manner share in the matter of getting concern whereby, the venture capital specialist not simply points of confinement to back, but instead furthermore give authoritative abilities.
5. Not each one of the entrepreneurs will experience high risk. In any case, funding financing contains risk. Regardless, the risk is reimbursed with a higher return.
6. Very little of development is locked in with the venture capital; it incorporates financing pretty much nothing and medium-size firms, which are in their starting periods. With the assistance of venture capital, these associations will offset and later can go in for the traditional finance.