Venture Capital, which can be literally translated as "venture capital", is a form of investment with which private, public or mixed investors acquire minority shareholdings in companies already established or to be created through the contribution of new capital. These companies, in relation to their innovative content, present good growth prospects in the medium term, but also a connected high investment risk. The necessary funds are generally disbursed to companies which, due to their nature or stage of development, are unlikely to obtain financing from traditional channels (such as banks). Venture Capital is part of the Private Equity category.
The Venture Capitalists cannot count on the perception of dividends since the companies in which they invest do not realize in the short term profits sufficient to compensate for the heavy initial charges for starting up the business. If successful, the margins are very significant. Depending on the Country Venture Capital has different rules for it to be put into practice. A venture capital fund is legally classified as an asset management company and becomes operational only when it reaches a certain threshold called "first closing".
In the European Union to start Venture Capital it is necessary to have a share capital of no less than 2 million euros indexed in joint-stock companies or limited partnerships. To obtain it, application is made to the Bank of Italy, and after authorisation, control falls to Consob with the collaboration of the Italian Stock Exchange Commission and the Antitrust.
For further information: “Venture Capital: what is it? Definition, risks and opportunities”
