Venture Capital Example

The risk capital or Venture capital It is a form of financing for a micro or medium entrepreneur (SMEs) and it is also a form of investment for financing companies who will have their respective investors.

It is characterized as a high risk investment and it may be at stake in the brokerage house.

In general, this investment is applicable to companies that have already started their movements, that have gone through the the seed capital and that may or may not have had the intervention of an Angel investor, who has sponsored.

This type of capital is focused on companies trying to change or restructure their company, and therefore generally involve a market study and company structure, which shows the viability of the deal.

They are carried out in the private order, staying out of the investments sponsored by the government and the capitalists who perform them are aware of the high risk but are compensated by the large profits that can produce.

Venture capital example:

The Gutiérrez Family has created a company in a residential area, which has condominiums and in which the commercial area is more than a kilometer away.

The tour focused on food and they prepared the food by delivering it to each of the departments.

Now they have planned to make customer purchases, charging a modest commission, receiving ordering online and buying the products in the stores that have been chosen by the customers.

Seeing the change they had to make, they looked for an investor who would provide them with the necessary capital.

For this they contacted a company called "P-Money Fast Srinter". Who sent an analyst to investigate the viability of the project, conducting a market study and movements.

When they found that there was a sufficient possibility to make the investment, they agreed to grant the capital, which had to be remunerated within a period of no more than 24 months.

After a period of 18 months, the company began to structure itself, with a total of 22 distributors and 16 Procurement Agents, who placed the orders.