A Venture Capital company or individual is one that invests money, time and expertise in usually young, rapidly growing companies that have the potential to develop into significant economic contributors. Venture Capital sometimes is the only source of equity for start-up or high risk companies. Venture Capital companies most likely are private partnerships capitalized by funds from well to do individuals.
• Finance new and rapidly growing technologies; • Provide a higher degree of management; • Introduce synergies between invested companies; • Purchase equity securities; • Assist in the development of new products or services; • Take higher risks with the expectation of higher rewards; • Have a long-term orientation rather than get out quick;
When considering an investment, Venture Capitalists carefully screen the technical and business merits of the proposed company. Venture Capitalists only invest in a tiny percentage of the opportunities they review and have a long-term perspective. Going forward, they actively work with the company's management by contributing their experience and business savvy gained from helping other companies with similar growth challenges. Venture Capitalists may be generalist or specialist investors depending on their investment strategy. Venture Capitalists can be generalists, investing in various industry sectors, or various geographic locations, or various stages of a company’s life. Alternatively, they may be specialists in one or two industry sectors, or may seek to invest in only a localized geographic area.
Some venture firms are successful by creating synergies between the various companies they have invested in; for example one company that has a great software product, but does not have adequate distribution technology may be paired with another company that has better distribution technology.
Venture Capitalists may be generalist or specialist investors depending on their investment strategy. Venture Capitalists can be generalists, investing in various industry sectors, or various geographic locations, or various stages of a company’s life. Alternatively, they may be specialists in one or two industry sectors, or may seek to invest in only a localized geographic area.
Some venture firms are successful by creating synergies between the various companies they have invested in; for example one company that has a great software product, but does not have adequate distribution technology with which it may be paired.Asset Management Company, LLC • 153 Cahaba Valley Parkway • Pellham, Alabama 35214 • Voice 205-403-0489 FAX 205-403-6508