In this article, we will talk about venture capital or venture capital
It is a financing pumped by investors in emerging and small companies in their early stages that they believe have high growth potential and a promising future in exchange for a stake in the company, for example in 2007 the venture fund "Union Square Ventures" was pumped, with a group of investors an initial investment in the startup Twitter It reached $5 million and with Twitter going public in 2013, the fund made a profit of about $1 billion.
But on the other hand, this type of investment may carry a great risk because it is an investment in an emerging company that may fail and may succeed, and that is why it is called venture capital, venture capital, or venture capital.
For example, at the end of the nineties, large numbers of start-up projects related to the Internet suddenly appeared.
Some of these companies did not have a clear business model or a feasibility study. However, some investors poured their millions into them, and these companies collapsed later in what was known at the time as the Internet bubble, so the owners of capital who invested in them suffered losses. Fatal The enterprising investor is keen on choosing startups in terms of the strength of their management, their ability to generate significant long-term revenues, future expansion and the strength of their target markets.
And when the investee company achieves success, they sell their shares for profit, and this may take 4 or 6 years.
Globally, venture investment jumped by 92% from $335 billion in 2020 to $643 billion in 2021. The volume of bold investment in the Middle East and North Africa region amounted to about 2.6 billion dollars in 2021.
Finally, I hope you will benefit from this article
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