Wednesday, 18 July 2012

TYPES OF VENTURE CAPITAL FIRMS



There is quite a variety of types of venture capital firms. They include:

Traditional partnerships -- which are often established by wealthy families to aggressively manage a portion of their funds by investing in small companies;

Professionally managed pools -  which are made up of institutional money and which operate like the tradi­tional partnerships;

Investment banking firms -  which usually trade in more established securities, but occasionally form in­vestor syndicates for venture proposals;

Insurance companies -  which often have required a por­tion of equity as a condition of their loans to smaller companies as protection against inflation;

Manufacturing companies -  which have sometimes looked upon investing in smaller companies as a means of supplementing their R & D programs (Some "Fortune 500" corporations have venture capital operations to help keep them abreast of technological innovations); and

Business Angels - Privates willing to invest in innovative products and services while they help in management issues.
 
In addition to these venture capital firms there are in­dividual private investors and finders. Finders, which can be firms or individuals, often know the capital in­dustry and may be able to help the small company seek­ing capital to locate it, though they are generally not sources of capital themselves. Care should be exercised so that a small business owner deals with reputable, professional finders whose fees are in line with industry practice. Further, it should be noted that venture capitalists generally prefer working directly with prin­cipals in making investments, though finders may pro­vide useful introductions.

I-City Ltd is an innovative micro-venture capital firm. We invest in your idea or your business but instead of money we provide the services that you require to accelerate development and take your business a step further. So even if you are a start-up or a well established corporation why don't you try a different approach?
For sure you will be surpirsed.
 

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