Venture capital focuses on value creation of the investment. The enhanced value in the said investment over the period of investment is derived through rapid growth of product and services either through technology development or greater market penetration.
Apart from committing funds, venture capitalists actively take on the role of strategic partners to entrepreneurs They actively serve on the board of the investee companies, provide operational insight and guidance and advice on issues pertaining to tactical business decisions to ensure the success of the ventures.
Venture capitalists may be generalists or specialists. The former invests in various industry sectors, geographical locations or at different stages of a company’s life cycle. While specialist venture capitalists focus on one or two industry sectors or selected geographical locations.
