From Venture Capital to Entrepreneurs
While there are many ways to help improve the economic reality in Romania, All Capitals Funding Agency believes it starts with who is making the investment decisions. Driven by this belief, we are trying to create a more accessible communication channel between venture capitalists and young businesses.
What is Venture Capital?
Venture capital is a form of financing where capital is invested into a company, usually a startup or small business, in exchange for equity in the company. It is also a major subset of a much larger, complex part of the financial landscape known as the private markets. Venture capital provides finance and operational expertise for entrepreneurs and start-up companies, typically, although not exclusively, in technology-based sectors such as ICT, life sciences or fintech.
How does Venture Capital work?
Venture capital allows entrepreneurs and small businesses with a minimal operating history and insufficient funds to secure capital to launch their business and also get guidance from experienced business specialists. Entrepreneurs are often unable to access money from the bank due to the lack of experience in business and the high-risk nature of startup businesses, and venture capitalists come in as a solution. Venture capitalists provide funding in exchange for control of decision-making and a portion of the company’s ownership.
The impact of Venture Capital?
Venture capital is characterized by high risk, but also high reward. On the one hand, venture capitalists must invest in emerging technologies and products that have massive potential to scale but aren’t profitable yet. If a company in which a venture capital firm invested is becoming successful or goes public, the venture capital firm makes a profit and distributes returns to the limited partners that invested in its fund. The firm could also make a profit by selling some of its shares to another investor in what’s called the secondary.
How we can help you?
One of our main objectives is to develop the economic and business environment in Romania, we intend to do this by attracting private equity from the international business environment. We also aim to help mature businesses from Romania that are looking for investors and want to develop locally and internationally.