Sunday, January 23, 2011

Venture Capital Exits

You have an idea. A business idea. It is something new, innovative and excellent. It will succeed as a new technological product on many International markets or Internationally. What you need is a venture capitalist to get money - the capital!

( Laen  Kiirlaen )

There are various venture capitalist on the market. The most known are business angels (sole entrepreneurs), corporate venture capitalists or venture funds. They will give you the money to get started and want back high internal rate, but without them none of it would happen.

( SMS Laen   Kodulaen  Väikelaen )

You received 1 million euros during 5 years and the business is doing well now. What you need to know is how the venture capitals can or want to get out. These are the ways.

( Kindlustus    Liising)

1) the owner buyback - you buy your shares back with high cost and run your business again at 100% rate.

(Préstamo  Crédito)

2) management buy out - your management board will take the burden to take a loan, be responsible for it and buy the venture capitalist out (loan is much cheaper than having a venture capitalist with 35% in your company for many years)

(Payday Loans     Payday Loan)

3) Bridge financing - your venture capitalist shares will be bought by an investment bank. Their general intention is too earn a little between and still sell the shares with IPO

(Creditos   Préstamos )

4) IPO - the shares of the company will be sold during IPO (initial public offering). Therefore the share capital will be liquid afterward. The negative side is that IPO need superb conditions in the company.

(Lainaa   Laina   Lainat)

5) Trade sale - the shares will be bought by a strategic investor, a larger corporation which wants to gain access to good sources of new technology, but it also provides support, contacts and marketing and production synergy.

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