Venture capital is generally provided in the form of private equity or shares in the invested company which are generally for new business or start up projects, where capital is required to commence the project or bring the project to a commercially viable and feasible stage, which is perceived to a have long term growth potential. Often companies that require Venture Capital cannot obtain finance from the banks or financial institutions as they cannot comply with to the standard market criteria due to limited assets and the risk involved in the unknown certainty of the venture. Venture Capitalists often require equity in the company in addition to having a say in the operation of the company. |