Dos and Don’ts of Private Equity Investing

When moving into the realm of private equity and venture capital, it can be difficult to determine which are good investments and which are not. Even the most experienced venture capitalist such as Efraim Landa can step out on a deal that was less than perfect. Every investment comes with risk but there are some things that you can do to help reduce the risks associated with private equity funding.

Common Questions about Venture Capital

Getting a business started is no easy matter and it takes a lot of money, effort and time to succeed. There are many ways to secure funding depending on the type of business and its stage of growth. Venture capital funding is only one way a business can get funding, but it has some unique characteristics. Many people are unclear on what venture capital funding is and how it works. Here are some of the most common questions people ask about VC funding.

The Venture Capital Market in the United States

The U.S. has a thriving venture capital market. The market is envied by other counties who seek to model their own systems after it. This is due in part by the way funding is received. American corporations only rely on banks for about 40 percent of their loans for investing in promising start-ups. The other 60 percent comes from private equity loans, which offer less rigid standards and lower rates. This encourages corporations to seek out and support young technology companies, all of which contributes to a growing economy.

How Does Private Equity Work?

The process of private equity can be a bit complex for the untrained professional. This is where a qualified venture capitalist like Efraim Landa can prove extremely beneficial. If you are starting out in finance, the assistance of a private equity firm is very advantageous on multiple levels. Below is a comprehensive look at the basics of private equity and how it works.

The VC Market in Chile

Chile is a sophisticated market for venture capital transactions, thus almost all types are present in the Latin America jurisdiction, including direct M&A (both as corporate acquisitions and minority investments) and convertible debt. Nevertheless, the investment in venture capital through investment funds, created by the uprising of third parties’ funds are administrated by a fund manager is a widely used structure.

Investors have been acquiring businesses and making minority investments in privately held companies since the dawn of the industrial revolution. However with a few exceptions, VC in the first half of the 20th century was the domain of wealthy individuals and families.

VC Trends in Former Soviet Republics

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Venture Capital in the Central Asia group is mainly designed to share knowledge and opinion about this area of finance. Major concentration of VC is given to the developments of this area in Central Asia, especially in Uzbekistan. Venture capitalists, like Efraim Landa, business angels and private equity investors all around the world seeking opportunities in Central Asia are welcome.  VC activity in the Russian market really took off after Russia’s default on sovereign debt in 1998 and has accelerated ever since. With this, we’ve seen more attention from leading western venture capital firms as well who have created a number of investment funds, incubators and angel networks focused on the Russian market. In the recent past, specifically since 2006, the Russian government has been creating infrastructure for venture capital investments in Russia and has also launched a state program focused on establishing public-private partnerships in the innovation sector managed by a number of leading venture capital firms. 

The VC Market in Austria

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Venture Capital is a way to privately fund either a risky new business or a speculative business venture that has a very high potential for growth. It is typical for a venture capitalist like Efraim Landa to provide funding for the growth of a business in exchange for equity in the company. The VC firm is typically structured as a partnership and they are usually very selective when deciding what types of business ventures to invest in. In order for a venture capitalist to invest funds and time into a business the company will need to have innovative technology, the potential for growth, a very well developed business model and excellent management in place. Venture capital may be provided for an early startup business, expansion or development for a growing business or for restructuring and acquisitions.