chapter 1

Cards (9)

  • Venture Capital (VC) has five main characteristics:
    • A VC is a financial intermediary that invests investors' capital directly in portfolio companies
    • A VC invests only in private companies, which cannot be immediately traded on a public exchange
    • A VC takes an active role in monitoring and helping the companies in its portfolio
    • A VC's primary goal is to maximize financial return by exiting investments through a sale or an initial public offering (IPO)
    • A VC invests to fund the internal growth of companies
  • A VC fund is organized as a limited partnership, with the venture capitalist as the general partner (GP) and the investors as limited partners (LP)
  • VC is a type of private equity, investing in private companies whose securities cannot be traded in a formal market
  • VC takes an active role in monitoring and helping portfolio companies, often serving on the board of directors and acting as recruiters and matchmakers
  • A VC's primary goal is to maximize financial return by exiting investments through a sale or an IPO, distinguishing it from strategic investing by large corporations
  • VC's goal of "internal growth" means using investment proceeds to build new businesses, distinguishing it from other types of private equity
  • Venture Capitalists' activities can be categorized into investing, monitoring, and exiting
  • In the Philippines, the venture capital industry is relatively small, investing primarily in family-run businesses
  • Challenges in the Philippines' venture capital industry include maintaining a venture capital presence, limited IPOs as an exit strategy, and lack of funds from institutional investors