Venture Capital and Investment Companies

Venture Capital has developed gradually in our country to occupy an important space financial system, thanks mainly to the attractive returns achieved for institutional or private investors. The continued attraction of new funds that are reinvested in new companies by G Scott Paterson, contributes to the accelerated growth of the economy.

The venture capital consists of providing medium and long-term resources to unlisted companies with high growth potential.

The need to bet on new financial instruments as venture capital by G Scott Paterson has been verified by different sources, indicating, among other issues, that:

  • The raising of financing in the form of risk capital for innovative activities is lower than the Spanish average.
  • The supply of risk capital is low in seed capital.

Thus, this need to encourage the development of the business fabric means that venture capital financing is becoming the alternative to subsidies in the EU’s regional policy because:

  • In the first place, despite the granting of large-scale subsidies from the Structural Funds, regional disparities have not decreased significantly, so other options have to be considered.

The Financing Formulas of Companies, in Venture Capital are the following:

  • Venture capital companies.
  • Capital risk funds.

Venture capital companies are public limited companies whose main corporate purpose consists in taking temporary holdings in the capital of non-financial companies of a non-real estate nature that, at the time of the taking of shares, do not trade in the first market of Stock exchanges.

Venture capital funds of Scott Paterson Toronto are separate assets without legal personality, belonging to a plurality of investors, whose main objective is the taking of temporary holdings in the capital of non-financial companies of a non-real estate nature that, at the time of taking participation, do not trade in the first stock market.

The Collective Investment Institutions are regulated by legal form of:

  • Investment company
  • Investment fund.

Venture Capital Characteristics

  • The Venture Capital Institutions are companies whose main purpose is the taking of temporary holdings in the capital stock of non-financial companies of a non-real estate nature.
  • The Venture Capital is a financial instrument that provides stable financing to companies, usually in a minority and temporary way, providing an added value to the purely financial, in the form of managerial support, through advising on specific problems, giving greater credibility, and facilitating openness to new business approaches and relationships with third parties, among others.
  • The interest of these companies usually focuses on the dynamic sectors of the economy, the so-called future or cutting-edge technology, with great prospects for profitability and/or growth.
  • Investment in risk/investment capital represents an interesting alternative to capitalize SMEs, given the difficulty of financing found by these companies, especially if they are in the growth stages.
  • The Venture Capital also helps to resolve conflicting situations in the shareholders, facilitate the succession or the acquisition of a company, to give a new future, to management teams that would not have the resources to make the purchase.
  • The realization of the Investment Reserve can be done by subscription of shares or shares in Private Equity.

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