Capital risks

The investors in capital risk bring Capital, like their networks and experiments with creation (one will speak then about Capital of starting) and with the first phases of development of Entreprise S Innovating S or of Technologie S considered as at strong potential of development and Return on investment.

The term “risks” used in France does not have an equivalent in the other countries where the term of opportunity (capital Venture) is generally employed.

The " term; Aventure" capital; was also used to describe the Capital Venture in the magazine " Decision makers: Strategy, Finance, Droit" , name closer to the American translation by less stressing the " risque" investment that on the " profits" waited.

Requirements of investment

Funds of venture capital must generate a high Rentabilité (compared to the bank loans with the companies). The wallet of this type of funds is composed of projects which fail as of projects which make a success of and compensate for thus the losses carried out on the first. The success passes by the resale of the company financed (called in France affiliated company) to another company, or by a going public, for example on Alternext, or the Eurolist with Paris.

It is thus understood that the selection of the projects (to finance the best and to draw aside the projects with the less promising prospects) is essential in this branch of industry. This stage inevitably passes by the analysis of the Development plan of the company (plane business). The investors are often ready to share the characteristics which they use to evaluate of the financial projects.

Specific aspect

The French definition of the venture capital sometimes wrongly includes the LBO (leverage buy out), which are operations of repurchase with action leverage (in other words with a strong share of debt compared to the setting in stockholders' equity), whereas with the the United States the capital venture does not include this kind of activities.

Principal funds of venture capital

Here a nonexhaustive list of the funds of capital risks:

References

Random links:Théétète (Plato) | Aga Khan III | Edmond of Nevers | Cascante | Ustrinum