What are Venture Capital Funds?

By Altive.16 6月 2021
Share via. 
What are Venture Capital Funds?

What are Venture Capital Funds?

Venture capital fund is a type of private equity fund that focuses on investing in start-up companies that are believed to have strong growth potential in the future. 

Venture capital funds are usually early investors of a company which is regarded as a more risky investment. However, the potential upside of the VC investments are more lucrative than other private equity investments which compensates the risks. Aside from capital investment, VC funds involve more in the operation of target companies.

VC funds would usually provide resources such as business connections, technology support and other professional advice to grow the underlying companies. 

 

Formation of a VC fund

The formation of a VC fund is similar to private equity funds, which involves a general partner and limited partners. A general partner is usually the investment team who manages the VC fund and makes investment decisions while limited partners are investors who commit capital only. 

As investments are usually made in a very early stage, VC investments are usually long term investments ranging from five to more than ten years with IPO and M&A being its usual exit options. 

 Register Account

If you are a Professional Investor and interested in knowing more, please register for an Altive account with us, or login into our portal to access further information.

Let’s Talk

We look forward to share our insights and information with you.
Language
Connect
@2021 Altive Limited. All rights reserved.
This Website and any information contained herein has not been reviewed by Hong Kong Securities and Futures Commission or any other regulatory authority, and is made available by Altive Limited (hereafter “Altive”) for Professional Investors’ general information only and not for any other purpose. For the avoidance of doubt, the term “Professional Investor” refers to and covers Professional Investors as defined under the Securities and Futures Ordinance of Hong Kong, Wholesale Clients within the meaning of the Corporations Act 2001 of Australia, Professional Investors as defined under Securities and Futures Act of Singapore, or other relevant respective local jurisdictions. The Viewer proclaims himself/herself as a Professional Investor by continuing to access the Website. The Viewer agrees that this website shall be used solely as reference, or for informational use and not for any other purposes, commercial or otherwise. Altive is an asset management company licensed with the Securities and Futures Commission (CE no. BPK587) to carry on business in Type 4 (advising on securities) and Type 9 (asset management) regulated activities in Hong Kong under the Securities and Futures Ordinance (Cap. 571). The information contained in this website is not intended and shall not be used or construed as an offer to sell, or a solicitation of any offer to buy, securities of any fund or other investment product in any jurisdiction. The information contained herein is qualified in its entirety by the terms applicable to the investment funds as set out in its constitutive and offering documents (“Fund Documents”) and should be read together with such Fund Documents. Neither Altive nor any of its officers, directors, agents and employees makes any warranty, express or implied, of any kind related to the adequacy, accuracy or completeness of any information on this site or the use of information on this site. The information in this Website is not intended and should be construed as investment, tax, legal, financial or other advice. Altive holds exclusive and rightful ownership of the intellectual and proprietary rights to all opinions, concepts, ideas, work products, and the like, related to or as a result of the General Information and contents in this Website.