Venture capital ze szczególnym uzwględnieniem business angels

Abstract

Venture capital can be defined as equity capital provided by firms or individuals who invest in young, rapidly growing companies which have the potential to develop into significant business. Venture capitalists work in partnership with entrepreneurs of the business assisting at the strategic level and providing support and advice based on their expertise, experience and network of contacts. It is a long-term investment, typically between 3 to 7 years. Annual dividends are either absent or play a minor role in the total returns as the venture capital investor is rewarded by the capital gain at the realisation of an exit of its equity stake through a trade sale or flotation of he business on a secondary stock market. Venture capital is originated in the USA in the late 1940s. Since 1970s its popularity has been rapidly growing, also in Europe. Business angels are wealthy private individuals, usually with an entrepreneurial or business background who provide small amounts of equity capital and professional support to businesses in which they have no family connection.