Venture Capital Program (capital funding)

SBA Small Business Investment Company (SBIC) program is an investment partnership through which SBA provides capital for small business risk. SBICs are privately owned and managed investment fund, authorized and regulated by

the SBA.SBIC

resemble venture capital, private equity funds and private debt in terms of how they work and their goal to generate high returns for its investors. However, SBICs qualify restrict their investments small businesses.

VC for reasons of size, assets, and stage of development can not seek capital from traditional sources such as markets and banks. Venture Capital is a type of equity financing, which takes in the light of the funding needs of entrepreneurial companies. The investments made in exchange for shares of the Company
Venture Capital has invested funding.

Objectives for the higher risks in return for higher yield potential, early stage funding for longer with strong croissance.Pour an investment horizon than the traditional financing, capital investment rather than debt, actively monitor companies by participating board, strategic marketing, governance and capital structure.

SBA provides venture capital through the (SBIC) Small Business Investment Company program, a partnership between the public and private investment only. SBA itself does not direct investment. It works with SBICs are privately owned and investment firms licensed by the SBA financing for small companies to raise private capital and it manages to offer / p> What is Venture Capital?

An unsecured financing for young, private companies that have the potential for rapid growth.

Venture capital typically comes from wealthy individuals (angels) and Corporate Venture Capital and carries a high risk. Venture Capital is a project of long-term investment, the companies time to the recipient organizations mature.

Venture Capital is an active form of financing. Investors look for value in companies in which they invest, in an effort to help them grow and add them to a better return on investment. This requires active involvement, and almost all venture capitalists, at least, that a seat on the board

.

But ultimately the goal of investors achieve a higher rate of return by the later exit strategy and the right time.

The Process

Presentation of the Business Plan. Venture-Capital-review of a business plan, negotiations with the company if it meets the fund’s investment strategy criteria

Due Diligence. Venture Capital Due Diligence, including research on the management team of the company’s market share, products and services, operating history, and the financial statements.

investment. After the completion of due diligence, if the capital is still concerned, a

has made investment in the company in exchange for share ownership and / or debt.

execution. Venture Capital is always actively involved in the business.

output. The outputs are usually through mergers, acquisitions and IPOs (initial public

Offers

) performed.

Iofe Yury, MBA

Universal Business Solution Structured

educational resources by Yury Iofe:

www.ubssolution.com

http : / / www.ubssolution.com / education.html

Investment Companies