THE INVESTMENT PROCESS OF VENTURE CAPITAL FUNDS

Univerzitet u Istočnom Sarajevu, Saobraćajni fakultet Doboj, Republika Srpska, BiH
Bosnia and Herzegovina


Abstract

Since entrepreneurship in transition countries faced with limited funding sources, especially a start-up, in this paper we demonstrate how the mentioned companies can access one of the most affordable sources of financing - venture capital funds. Because of the great importance which venture capital funds have for the development of entrepreneurship in transition countries in this paper we describe the process that every company has to pass in order to obtain assets from these funds. Venture Capital Funds are defined as funds that invest in companies in exchange for a share in the property. These are companies that invest the money collected from private investors with the expectation that it will achieve high annual returns on their investment. Therefore, venture capital funds investing in innovative enterprises that promise a successful business.Venture capital funds invested to achieve a high return on their investment. After achieving a high return on invested assets and increase the value of enterprises, venture capital funds are looking for the most convenient way to get out of that company.

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References


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