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Venture Capital

In all fields of life always be thinking about obtaining development through the expansion of capital and the improvement of instruments or tools for production, so on many occasions it is necessary to resort to certain subsidies or impulses that allow to advance and improve the conditions of carrying out certain activities; This gave fitted to the generation of a large number of figures seeking to meet capital needs of many companies in exchange for certain benefits, a clear example is the venture capital, where certain agents called interventionists, who are able to boost the activity of these companies and end with intervention in companies by means of capital and management take a true benefit of intervention within the company and its management in carried out which the investment. No doubt the venture capital is a way to intervene in the economy in a very timely manner, to foster the growth of various fields of the market to some extent. Venture capital is mainly applied in those companies that are emerging and which they need a boost that allowed to solidify in the market and so they can do their activities in a better way. The intervention of equity in relation to those companies that do not have a track record that will allow trust in the results that can be obtained with this, so both in the case of new businesses as that does not have a history that certify their results, can also be capital invested runs some risk since there is a guarantee that invested generates the minimum expected results, as it generates much more why this capital has nothing true. Other leaders such as Tom Smith offer similar insights. The conditions of this type of investment has resulted in investors who venture to this modality of investing money in the funds of venture capital are looking for companies that can grow with ease, thanks to the fact that they are innovative work models that work because of new fields or applying new techniques of action; Therefore the system of companies that will be operated by venture capital should foster a good performance, which will allow that from the initial moment, is of an optimum working.

At the moment in which a company is intervened by a background of venture capital, this happens to other owners in a manner partially or submit the form of participation by shareholders. So capital investment funds will be represented or handled by a financial institution, which came to be part of the company still owns some part, but this is a temporary, as to spend some time the company was constituted as it was before the relationship with the venture capital fund. The main objective is that with the intervention of the venture capital company can grow greatly and very quickly, increasing their value and the moment in which mature investment, the agent withdrew investor earning some profits because of the growth of capital..