An Africa Business Community
What is venture capital?
Venture capital is finance provided to companies, mostly in exchange for an equity stake of the company or product. These financial resources are vital for an enterprise, since it enables the company to move into the second stage. It may be used for instance as an investment for product innovation or research and development. Venture capital is provided to companies by either specialist financial institutions or by informal venture capitalists.
Financial institutions such as banks offer loans to entrepreneurs. These financial institutions demand the payment of interest on the invested capital. Informal venture capitalists (or informal) on the other hand are mostly wealthy individual investors who are willing to invest in start-ups, early stage businesses or expanding enterprises, in exchange for stocks and bonds of the company.
Financial institutions such as banks offer loans to entrepreneurs. These financial institutions demand the payment of interest on the invested capital. Informal venture capitalists (or informal) on the other hand are mostly wealthy individual investors who are willing to invest in start-ups, early stage businesses or expanding enterprises, in exchange for stocks and bonds of the company.
Comment
About
Badge
© 2010 Created by Bazz Vlugt on Ning. Create a Ning Network!
You need to be a member of Africa Venture Capital to add comments!
Join this Ning Network