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What are Venture Funds?

Venture funds are such organizations that invest their financial capital in projects or some enterprises at the initial stage of their development and formation. It is important to note that not every such kind of investment in the future turns out to be profitable. According to statistics, about 80% of all investments in practice are unprofitable. However, the remaining 20% are so profitable that they fully cover the initial costs and bring a significant profit afterwards.

Venture capital funds. History

This type of business was first finally formed in the US in the 1980s. Such innovations were primarily related to scientific and technological progress, which at that time was dominant throughout the world, as well as with the rapid development of the electronics industry. By the mid-1980s, there were about 650 investment organizations of this type in the United States of America. Moreover, the governments of some states sought an opportunity to help newly formed firms and began to join the ranks of venture capitalists. According to experts, in 1987 venture funds underwent a peak of their funding. The total investment was about $ 4.5 billion.

Venture capital funds today

At the moment, to a so-called "venture financing" is increasingly resorting to small projects called "start-up". Most often these are small companies whose staff does not exceed sometimes 10 people. They come up with an idea and go with it to venture funds on the territory of the country. Then the specialists make a decision and approve the application or, on the contrary, reject it. In the first case, the fund begins to fully fund the project. The market success of such small companies is primarily their rapid growth. After a while, a small start-up can capture an impressive market share, for example, if the original idea was associated with the latest technology. On the other hand, as already noted above, only a few such companies survive on the market. Among the most famous and at the same time successful projects, experts call Apple, Xerox and Intel. Judging by the success of these projects, one can think about the fact that this kind of practice is really expedient.

Venture capital of Russia

As for our country, the situation here is not so optimistic. The thing is that Russian venture funds relatively recently started their work (in comparison with America). It is important to note that such experience for our state is new, and only a few are willing to risk their investments. Despite the disappointing forecasts of specialists, entrepreneurs are still trying to invest their finances in start-ups. Probably, in the near future this industry will get a new round of development in our country.

Runa Capital

Runa Capital is the most popular Russian venture fund to date. Its founder Sergey Belousov has already managed to bring to the world market such brands as Rolsen and Parallels. It is believed that this company has become popular and is quite successful only thanks to a strong marketing component. The fund invests about $ 10 million, but its share subsequently ranges from 20 to 40%.

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