Venture capital refers to equity investments in young private companies
by institutions, investment funds, or wealthy individuals. In return investors
receive an ownership stake in the company, in the form of stock. As the
name suggests, such investments are risky. When venture capitalists invest
in a company they accept the likelihood that they will lose their entire
investment in exchange for the possibility that the company will become
the next Intel or Microsoft.
In evaluating potential investments, venture capitalists look for
entrepreneurs with original products or technology. Entrepreneurs articulate
their vision through a business plan describing the proposed product, its
potential market, and the resources needed for success. Venture capitalists
considering making an investment in a company will evaluate the
company's management and may insist on changes, especially in the case of
companies run by young entrepreneurs. The investors themselves often
play an active role in the management of their investments by providing
strategic advice or other guidance. They always have an "exit strategy" or a
plan to realize a return on their investment. The most popular exit strategy
is an initial public offering (IPO) on a stock exchange. Venture capitalists
are quick to pull out of an investment if they feel a company s chances of
success are no longer strong.
Venture capital plays an important role in economies by directing money
to entrepreneurs with brilliant ideas but who are unable to raise capital from
risk-averse financial institutions such as banks.
92. VỐN ĐẦU TƯ MẠO HIỂM ĐẾN VIỆT NAM
Gần đây, chủ tịch đồng thời là nhà sáng lập IDG, một công ty hàng đầu
về lĩnh vực truyền thông, đã hé mở kế hoạch đầu tư 80 triệu đô-la cho
ngành công nghệ thông tin của Việt Nam dưới dạng vốn đầu tư mạo hiểm,
vốn đầu tư mạo hiểm là một khái niệm tương đối mới ở Việt Nam.
