Venture capital is money invested in innovative enterprises in exchange for a stake in the business. The standard time frame of the investment is three to five years, at which stage it is usually expected that there would be an initial public offering, merger, acquisition or a buy-out.
Venture capital gives your business a cash injection to fund expansion, product development or acquisition. Unlike more traditional forms of finance, periodic interest payments are not expected on the investment – the payout comes at the end of the term.
Your business can also draw on the expertise and advice of the venture capitalists. This could include commercial and strategic advice, a network of business contacts, an experienced director on your board, or assistance with staff and management development, fundraising or marketing.
More information can be found on www.ivca.ie or www.bvca.co.uk