The term "venture business" appeared as a result oftranslation of the English word "venture", which means a venture or venture. This type of business is focused on the use of new technologies or the results of scientific achievements in practice.
Venture business as a form of investment inRussia began its development relatively recently, but its main players and directions of development are already clearly defined. In general, he is engaged in the transformation of scientific and technical achievements, from the initial idea to the introduction of this technology into mass production.
Features of venture business
The venture is closely interrelated with theInnovation, but its activities do not necessarily include innovative technologies. For example, it could be the introduction of a venture project into new markets. But thus ideas and new inventions and will remain unrealized without venture financing as all activity connected with innovations, is very risky. Only the venture business organization gives investors the opportunity to make a profit that is much higher than the initial investment.
Differences from traditional activities
Venture business is, first and foremost,that its financing is carried out without guaranteed security. The necessary funds are provided only for a promising idea. In this case, the pre-agreed share of shares of the venture company serves as a pledge.
If the affairs of the established company go well, thenat a certain stage, the investor will be able to sell its shares and not only return the invested funds, but also get a perfectly acceptable profit. If the project is a failure, then the investor will be able to claim only a certain part of the firm's assets, depending on its share in the authorized capital.
But do not think that investors do not take into accountbusiness risk, financing venture projects. On the contrary, they plan to get a considerable profit from their investments, many times exceeding the interest rates of bank deposits.
Of course, venture business involves a certain risk, but a reasonable investor will never invest in a knowingly losing venture.
Financing
An investor, financing a venture project, does notcounts on quick profits, the contract is concluded on a long-term basis. He plans his exit from the project in advance. Consequently, the enterprise should be prepared for this development of events, so that the withdrawal of funds does not affect its operational and financial activities.
The investor puts forward special requirements to the team involved in the project. Very often money is allocated not so much to the idea or project, but more to specific people.
Advantages of such a project:
Disadvantages:
