I would like to start my seminar paper with the explanation why I have chosen this topic: venture capital. Although, the concept of the word “venture capital” is little known, it is often used in business.
When people want to set up or start a company, they need money, called capital1. Venture capital is a specific kind of capital, which has several definitions such as: Venture capital represents financial facilities provided by an investor into the equity capital of unlisted companies2 or venture capital is one of the most effective tools for fostering small and medium sized enterprises and also plays an important role for larger companies at the capital market in developed countries3. Venture capital, represents a form of financing above small and medium sized enterprises, when a specialized (venture) fond decides to support financely a venture enterprise plan.4 There are many definitions for venture capital. The most concise definition, which I have found, is used in the first article of this seminar paper. Several investment stages of an enterprise are defined in the second article....