Venture capital funds are organizations that invest their financial capital in projects or any enterprises at the initial stage of their development and formation. It is important to note that not every investment of this kind is profitable in the future. According to statistics, about 80% of all investments in practice are unprofitable. However, the remaining 20% are so beneficial that they fully cover the initial costs and bring significant profits afterwards.
Venture capital funds. History
This type of business was first finally formed in the United States in the 1980s. Such innovations were primarily associated with scientific and technological progress, which at that time dominated the world, as well as with the rapid development of the field of electronics. By about the mid-1980s, there were about 650 investment organizations of this type in the United States of America. Moreover, some state governments were looking for an opportunity to help newly formed firms and began to join the ranks of venture capitalists. According to experts, in 1987 venture capital funds underwent a peak in their financing. The total investment amounted to about $ 4.5 billion.
Venture capital funds today
At the moment, the so-called "venture financing" is increasingly resorting to small projects called "startups". Most often these are small companies whose staff does not sometimes exceed 10 people. They come up with an idea and go with it to venture funds in the country. Then the experts make a decision and approve the application or, on the contrary, reject. In the first case, the fund begins to fully finance the project. The market success of these types of small companies is primarily in their rapid growth. After a while, a small startup can capture an impressive market share, for example, if the original idea was connected with the latest technology. On the other hand, as noted above, only a few such companies survive on the market. Among the most famous and at the same time successful projects, experts call Apple, Xerox, and Intel. Judging by the success of these projects, one can think about the fact that this kind of practice is really advisable.
Russian Venture Funds
As for our country, the situation here is not so optimistic. The thing is that Russian venture funds have relatively recently begun their work (compared to America). It is important to note that such an experience is new for our state, and only a few are willing to risk their investments. Despite the disappointing forecasts of specialists, entrepreneurs are still trying to invest their finances in startups. It is likely that in the near future this industry will receive a new round of development in our country.
Runa capital
Runa Capital is currently the most popular Russian venture capital fund. Its founder Sergey Belousov has already managed to bring such brands as Rolsen and Parallels to the world market. It is believed that this company has become popular and quite successful only thanks to a strong marketing component. The fund invests about $ 10 million, but its share subsequently ranges from 20 to 40%.
