Role of VC & PE Companies

Venture capital has a number of specific advantages over other forms of financing:

• Venture capital firms provide mid to long term financing, providing a solid capital base for the company’s further development. Furthermore, they have the ability to cover further financing needs in collaboration with other investors, if this is needed for the development of the invested company.

• Venture capital firms become partners to the invested company, thus sharing threats and success

• Venture capital firms provide strategic, organizational and financial consultation based on the experience they have collected from similar companies.

• Venture capital firms possess a wide network of connections in several sectors which proves to be very useful for a company seeking clients, staff, as well as strategic partners and investors.

• The participation of a venture capital firm adds prestige and validity of an institutional investor  and facilitates access to traditional forms of financing e.g. bank debt

• Venture capital firms possess extensive experience in preparing a company to enter the stock market as well as in issues regarding mergers and acquisitions.