| Venture capital consists of having professional | | | | activity (bio technology, information technology, etc.) |
| investors take minority or temporary shares of the | | | | Venture financing refers only to transactions |
| capital of start-up or recently opened businesses. This | | | | conducted in equity in companies creating innovative |
| type of funding allows small companies to experience | | | | and young companies with high growth potential. |
| growth in their first years. The participation of | | | | The venture capital firms typically for amounts in |
| venture capitalists allows small companies to be more | | | | excess of 300,000 euros. However, some agencies |
| attractive to financial institutions and improve the | | | | are investing smaller amounts of between 5,000 and |
| possibilities of getting bank loans. | | | | 76,000 euros (local venture capital) that may combine |
| When a company receives Venture financing, the | | | | angels whose investments are typically between |
| owners are able to get advice from the investors | | | | 50,000 and 150,000 euros. |
| and sometimes even use their contacts in the | | | | There are capital investments for every stage of |
| industry. Is Venture capital and capital investment the | | | | development of any business. For example, Seed |
| same thing or are they different? Venture capital | | | | Capital is given to companies that have just started |
| includes all operations that involve buying shares of | | | | or those that are in the process of developing a new |
| unlisted companies. These equity investments, usually | | | | line of product, or prototype. Of course, this kind of |
| minority, are performed by specialized professionals | | | | funding is given to companies that are already legally |
| whose main aim is to achieve substantial gains in a | | | | constituted. |
| relatively short time, usually between 4 and 5 years. | | | | There is also Creation or Start-up capital where the |
| The capital investment involved in all stages of | | | | intervention happens when a new company is on its |
| business life: creation, development, transfer. Various | | | | first development. Also referred to as post-creation |
| private or semi-public equities are present on the | | | | capital. The term "venture capital" concerns only the |
| market. Some are specializing in specific sectors of | | | | first two types of intervention. |