Venture capital is a way for investors to help finance start-up companies.
Thanks to venture capital, new ventures can be financed.
Venture capital is a way for investors to help finance start-up companies.
Venture capital is a way of financing companies that are being born and that do not have a track record that allows them to trust their results or to be sure that returns will be received for the money that is lent to them.
For this reason, investors who put their money in venture capital funds look for companies that can grow quickly and have innovative business models (hence, ensure good returns once they go live) and that, In addition, they are in an early stage of development.
When a Risk Fund invests in a company, it becomes a partial owner or shareholder of it.
In Chile
At the national level, there are some of these private and public funds. Of the latter, those offered by CORFO to Investment Funds stand out.so that they are the ones who make the capital contributions or loans in companies, establishing the commercial relationship exclusively between said Funds and the beneficiary company.
In the case of CORFO, Venture Capital is a type of long-term financing that is channeled through Investment Funds governed by Law No. 20,712, “with the purpose that these be invested in small or medium-sized Chilean companies, which have high growth potential and additionally require the technical and operational support of a strategic partner”.