EBI Publications

potential to grow quickly to a significant size, yielding a significant return on the Venture capitalist investment in a relatively short period of time. Venture capitalists are not just interested in start-ups. Your company’s current size is less important than its future aspirations and growth potential. A target company for a Venture capitalist is one that may be capable of becoming a large market leader in its industry due to some new industry opportunity and competitive advantage. There is no single determinant for a successful portfolio company, but a Venture capitalist tends to focus on the following factors: • Commercially viable. Does the company have a product or service that can be reproduced A venture capital firm (VC) typically looks for new and small businesses with a perceived long-term growth potential that will result in a large payout for investors. Venture capital addresses the consequent financing gap through equity participation. It was conceived in 1946 in the US, but its growth only accelerated in the late 1970s. In Europe, venture capital only started in the 1980s. In the last two decades venture capital has grown to become a well- established sector with recognized conventions and practices. What do Venture Capitalists look for? Venture capitalists look for businesses that have the

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