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  What is venture capital or investment capital?  
 

 

Venture capital, also called investment capital, development capital, or private equity, can be defined as the participation –usually on a minority and temporary basis (Sodena’s Articles of Association contemplate this)- in the capital of companies that are not quoted on the Stock Exchange.

With the help of a venture capital partner a company can grow and create value. Once the investment projects are completed and mature, the venture capital partner can sell its stake, obviously with a capital gain.


 


 
The venture capital partner aims to be involved for no longer than 10 years. The idea is also to give the promoter alternatives in financing short-term loans, so the venture capital partner stays in for long enough to see the investment mature.

A venture capital partner is an active partner, unlike a lender or a stock exchange investor, because it takes part in decisions at Board of Director level but without getting involved in the day-to-day running of the company.

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