There are many sources of venture capital for new businesses. Some sources include: External private equity, Business angels, and Intrepid capital funds. These investors may be more lenient with their investment terms. However, a venture capital fund needs a business idea that is both innovative and profitable. In order to attract such investors, a business needs to present a strong business plan and an entrepreneur with a proven track record. Institutional investors include pension funds, insurance companies, professionally managed charitable foundations, and endowment funds at universities. Other sources of venture capital are wealthy individuals, members of the business community, and corporations. These investors are a good source for new ventures, especially if they do not have the resources to attract funding from banks.
Public equity
The relation between venture capital and the public equity markets continues to produce interesting outcomes across study settings. Black and Gilson (1998) provide evidence of a positive relationship between the US stock market and VC activity in Japan and Germany. Lin (2017) provides similar evidence in China. Although the data from these two studies only indicate that there is a positive relation between the stock market and VC activity, recent developments in Europe and Asia show a strong correlation between these two.
A more balanced approach would involve a combination of the stock market and public equity sources to provide the funds needed by VCs. In addition to institutional sources, private individuals can also invest in VCs. Private equity firms also contribute to the VC market by providing seed capital. These funds come from a variety of sources, including pension funds, mutual funds, fund of funds, and individual investors. By examining the relationships between these sources and VC funding, the government and VC firms can better decide which financing sources will best support their companies’ growth.
External private equity
The term “external sources” can refer to a number of different types of investment capital. Venture capitalists, for example, are private equity firms that invest in a number of startups and early-stage companies. The firms invest $100 million or more in one or two companies and tend to stick with mature companies in order to minimize absolute losses. Venture capitalists, on the other hand, typically invest $10 million or less in each company.
While Chinese and other countries are also becoming increasingly dependent on venture funds, private equity funds are not yet widely available in China. In fact, the Chinese government’s governmental support is essential in ensuring that the high- tech sector benefits from private investment. The government recognizes the need for private equity markets in China, and is working to pass legislation to facilitate access to these funds. However, the Chinese government is only beginning to recognize the importance of venture capital and private equity in the country.
Business angels
The business angel is an individual who invests their own money and time into a new business. They are usually local and experienced in a particular sector. Often, they will invest alone or in a small group and have diverse motivations. Because of this, business angels tend to have a direct approach to their investments, which can be beneficial for a startup. In addition, business angels are often able to offer access to a large network of contacts.
While the term “business angel” is not universally defined, it does have several important benefits. It can be an excellent source of early stage funding for new companies or expansion funding for well-established companies. However, a successful business plan must have convincing market research and an experienced management team in order to attract business angels. Business angels can provide the missing skills and introduce new management to a company. They can also provide the expertise needed to grow a business.
Intrepid capital funds
Intrepid Capital is a source of venture funding, and its fund is led by seasoned investors, including Mr. Hayes. The firm has a focus on smaller deals, and its president and co-manager, Mr. Travis, has thirty years of investment experience. Previously, Mr. Travis served as an analyst for a $20 billion Eaton Vance strategy. He is currently the co-lead portfolio manager of Intrepid Income and a member of the investment teams of the Intrepid Endurance Fund and Intrepid Capital Fund. Mr. Hayes earned bachelor’s degrees in finance and piano performance at Auburn University. He is a certified financial analyst (CFA) and holds an M.B.A. in venture capital.
Intrepid Capital Management is a Florida-based investment management firm. Its fund managers invest in growth-equity companies and aim to create value by investing in great businesses. Intrepid Capital Management’s investment philosophy centers on risk-control and seeks to outperform over market cycles by leveraging global relationships and strategic insight to invest in outstanding businesses. Intrepid Capital management provides operational support to help investee companies grow and thrive.
