Venture Capital with Reference to SSI's

[projects4mp]

Venture capital means risk capital. It refers to capital investment, both equity and debt, which carries substantial risk and uncertainties. The risk envisaged may be very high may be so high as to result in total loss or very less so as to result in high gains. The investment in equities is expected to grow up as capital gains, which can be converted into cash when required. Venture capital is thus an initiative to provide vital equity support to new industries where the risk element is high and entrepreneurs are qualified but lack necessary resources to proceed on their own.
A venture capitalist entertains keen interest and active participation in the working of the business. Subject to the understanding with the investee, the investor takes part in the management, production, marketing, accounting, training activities etc. The venture capitalist therefore becomes a partner in the business and shares success or failure proportionate to the equity investment.
The venture investment is long term and is not repayable on demand. The venture capitalist has to wait between 5 and 10 years for any significant return on his investment. The venture capitalist does not participate in the day-to-day working but protects and enhances his investment through an active supporting role.

[wickedrax]

hey thanks a lot..............................................

[sunil_kh54]

Thanks a ton.!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!