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Venture Capital Investment Startups

started by vishalvoifs on 30 Jul 20
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    What is Venture Capital? How to become a Venture Capitalist? @voifs.net


    Are you looking for Venture Capital for your startup? If yes then, first of all, you have to understand what do you mean by venture capital? In easy words, venture capital is a form of private equity. When a startup needs money to grow and wealthy investors like to invest in a long term period. This capital will be known as venture capital. Generally, it comes from well off investors, investment banks, and other financial institutions.



    How many types of Venture Capital? What is the difference between private equity and VC?


    The VC has three stages such as early first is financing for the startup business and second is expansion financing for the startup. In the last stage known as acquisition & buyout financing of the startup. Now it depends on an entrepreneur what he/she wants.
    Mostly private equity firms can invest in any type of startup business but VC has a limitation. They can invest in technology, biotechnology, and clean technology. Another difference of payment, where private equity firms invest in both cash and debt but VC deals in only equity pattern.


    How does a Venture Capital firm work?


    VC is a form of financing and firms provide money on high risk on behalf of a good return on investment (ROI). The VC firms invest capital insist on owing 20 to 25 percent mostly. In other words, a VC firm is a group of investors who want to make income from wealthy people who want to grow their wealth indirectly.


    Read this Article also- How to find Angel Investors for a Startup in India? 


    The Venture Capital firm makes funds in two ways, first is management fees and the second is carries. The first-way to pay bases on an annual fee and second bases on salary form. The VC fund gives by wealthy individuals & companies and VC firms manage their money in high-risk startups in exchange for equity. For more articles, read this article- How to Invest in startups in India?


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