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Tips for the Venture Capitalist

Venture CapitalistA venture capitalist is defined as one who invests long-term and relies on a hands-on approach with each of their investments and works actively with entrepreneurial teams that specialize in management so that they can create awesome companies.

Understanding How Venture Capital Works

Anytime someone starts a new business, it takes money to get it up and running. It takes money to rent or purchase office space, equipment, furniture, and supplies. While avenues such as tapping into your personal savings, getting a bank loan or bootstrapping are ways to get money for the startup costs, venture capital is another choice. You will often hear about a private equity firm when it comes to venture capital. There are a few different choices when it comes to choosing a private equity firm. Some are known as passive investors while other is active investors. Read the rest of this entry

VC Market in Venezuela

Venezuela VC Market

Venezuela Flag

When entrepreneurs have innovative ideas for starting a company, they seek funding to transform their vision a reality.  Venture capital firms like Effi Enterprises are here to support that entrepreneur in finding the necessary funding to create a successful enterprise. Venture capital firms are always watching the global markets, looking for emerging markets with extreme potential for investment opportunities.  Venezuela’s market has potential for growth, but has limited exposure to use of venture capital funding.  As it is not available for VC investment at the present moment, it is a place VC firms should continue to monitor for opportunity in the future.

History of Venture Capital in Venezuela

There has been a strong history of foreign investments in Venezuela’s oil industry.  After increasing political and economic instability, the overall investment climate in Venezuela began to decline in 2007.  Most companies decided to keep their investments in Venezuela in hopes that the situation would improve.  Strict labor and environment laws have increased the costs of exiting the Venezuelan market. Read the rest of this entry