
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