What is Venture Capital and how does it works

People in today’s date love to invest money and they don’t want to keep the money ideal.  Yes, investment is the right way to accelerate the growth of your wealth. As far as investment is concerned it requires a medium to invest where the investors can multiply their money. The venture capital is the platform where the investors can invest their money to multiply it. If you have made your mind to invest your money with the venture capital, these are the term which you must know. Have a look;

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Venture Captial

Venture Captial

Corporate venturing: The concept of corporate venturing is not new at all. In fact the concept of corporate venturing was initially introduced during the 1980; however it has picked the pace since the last decade. In case of corporate venturing the investors will be allowed to invest on a corroborate house and their invested asset will get the return according to the growth of the corporate. The return for the invested money absolutely depends upon the growth of the corporate. Prior to invest in a corporate there are certain guidelines which the investors have to follow and the subsequent rules of investments also.

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Venture Capital Structure

Venture Capital Structure

Capita call: When any of the corporate housed wants to start some new assignment it requires a huge sum of investment. If the corporate house is able to get the investment money from its own sources it can proceed ahead for the new venture. Else the concept of capital call will come to the rescue of the corporate house. With the capital call the corporate will invite to be their partner in the investment for the new venture. The investor can invest their money with the corporate as a partner and they will get the return with the respective ratio with which they have invested in the capital call.

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IPO: Called as initial public offering. The IPO is considered as a wonderful way to invest in venture capital. In fact if the recent trend is to be seen more and more people are tempting to invest in the IPO. And why not, the IPO is providing an eye catchy return to your investment asset compared to any other form of venture capital investment. Prior to start a new venture a company can generate money from the public and the whole process is called as IPO. The investors will be subscribed some share of the company according to the amount of investment in the IPO. The return to the investment money is directly depends upon the performance of the company.

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Venture Capital for Startups

Liquidity: The liquidity is also anther mode of investment on the capital venture. However in case of the liquidity the investors will not be subscribed with the share of the company. In case of this investment, the investors have to invest in the commodity and the liquidity market. The fund which has been invested in the liquidity market will get the return according to the performance of the liquidity market. If you are a close watcher of the liquidity market, this investment can bring color for you.