Where companies can’t afford to venture, venture capital does!
That is exactly the job of venture capital firms. They finance startups and other companies whose business they see potential in. They don’t do charity. They invest with the expectation of maximised returns.
However, that is only possible when venture capital firms can monetise their investments by effectively selling them or liquidating them. Of late, this has been tough for them to do in light of the complicated legalese involved in the exit strategies.
This is where a mechanism called secondary sale steps in. It involves the sale of one firm’s investment to another, a strategy that is faced with fewer regulatory logjams than others.
Read all about this mechanism by clicking on the link below.
https://transfin.in/exit-strategy-of-vc-firms-in-india-special-focus-secondary-sales
Original Source: https://www.pearltrees.com/nyppexprivate/item313460656The investment itself has a few influencing factors.
The safety and security of any business, If you are thinking whether the investment is a safe way of earning then you must remember clashes are everywhere, still, this process can be trusted in case of earning if you manage to choose a proper investing place or a proper investor.
But the most effective investment remains to be private equity funds because of its liquidity.
Hence, liquidity for private equity funds is what makes investment in private equity more famous.Objectives of investmentSafety is the main concern for any type of activity and thus investment needs to assure safety.
Investing can become a good source of income some people invest and earn money and make it their secondary source of earning.
In that sense, the private equity fund is also a popularly invested factor.What is a private equity fund?In simple words, private equity funds are investment schemes with limited partnership.
