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| Related Topics: | Funding Advice | VC Financing | |
| How venture capitalist make their money? |
| Venture capitalists usually put in seed
money and take up equity or quasi-equity (from 15% to 50% of the
investee's share capital) in the companies in which they invest in. They
will realize their investments when the companies they have invested in
are listed in the stock exchanges. It may be with NASDAQ, SESDAQ, MESDAQ,
KLSE or any other reputable stock exchanges.
Alternatively, venture capitalists can realize their investments by divesting to existing public listed companies or finding other new investors. In the event that your company cannot be listed due to unforeseen circumstances and cannot divest to other companies, then most venture capitalists may want you to buy back their investment at a price to be agreed. They may exercise a put and call option to divest back their investment to you. However, if everything fails, then the venture capitalist may resort to the last exit by liquidating the company in which they have invested. |
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