Venture Capital and Equity Investment Funds

2012 ◽  
pp. 240-266 ◽  
Keyword(s):  
Venture Capital ◽  
Investment Funds ◽  
Equity Investment

Structuring and financing private equity and venture capital transactions in Luxembourg

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bertrand Géradin
Keyword(s):  
Venture Capital ◽  
Design Methodology ◽  
Private Equity ◽  
Corporate Law ◽  
Efficient Manner ◽  
Equity Investment ◽  
Content Type ◽  
Key Issues ◽  
Practical Implications ◽  
Optimum Balance

Purpose Luxembourg is the jurisdiction of choice for many private equity and venture capital investors/funds. Though the optimum balance of financing instruments in relation to any structure varies according to its particular circumstances, one factor that all Luxembourg domiciled FDI structures have in common is the requirement for an appropriate level of equity investment. This article intends to summarize some of the topics frequently encountered in relation to equity structuring choices. Design/methodology/approach Author details the different steps and choices available to investors and funds. The article offers answers to questions to provide a broad, yet detailed, overview of the process and journey; from selecting the vehicle right through to distributing to investors, governance, and compliance. Findings To avoid an expensive mistake, it is paramount that the private equity or venture capital investors and management team receive detailed advice to ensure: (i) the deal is structured in the most tax efficient manner possible and the commercial deal is suitable for all parties, and (ii) the deal is structured in a manner which is effective under Luxembourg law, for both tax and legal purposes. Practical implications It is important that non-Luxembourg lawyers are able to identify key issues when negotiating the terms of the investment documents, in particular, the articles of association and shareholders' agreement. Originality/value Practical guidance from Luxembourg lawyer specializing in corporate law, mergers and acquisitions, venture capital and private equity transactions.

scholarly journals PRIVATE EQUITY MARKET IN THE ECOSYSTEM OF START-UPS AND SME SECTOR – PART 1

2020 ◽  
Vol 49 (49) ◽  
Author(s):  
Tadeusz Waściński ◽  
Anna Dudkowska ◽  
Jevgenijs Kurovs
Keyword(s):  
Venture Capital ◽  
Private Equity ◽  
Eastern European ◽  
The European Union ◽  
Investment Funds ◽  
Legal Form ◽  
Investment Companies ◽  
Start Up ◽  
Polish Economy ◽  
Start Ups

Private Equity (PE)/Venture Capital (VE) Funds cover medium and long-term transactions on the private enterprise market. They adopt a legal form of closed-ended investment funds or more and more appreciated alternative investment companies, which contribute to a development of innovativeness in the Polish economy, supporting enterprises on each level of their expansion. Over the last years, there has been an increased value of investment reported among the European PE funds. Poland’s share in the Central and Eastern European (CEE) investments has been the highest in the region and does not fall below 46%. Moreover, more than a double increase of domestic PE investments in 2017 is an opportunity for improving one of the lowest innovation indexes in the European Union. An important role in this matter also belongs to the growing power of start-up ecosystem. It is not without significance that there is a growing awareness of start-ups cooperating with funds, which is defined e.g. by a stronger position of investor or a limited possibility to negotiate the terms of investment agreements. The aim of this article is to present the PE market and its meaning in the development of young companies. Showing in the first part of the article statistics related to management of venture capital in Poland compared to Europe and the CEE will identify tendencies in development of the Polish PE market. It will also allow estimating Poland’s chances for improving its position in the innovative European ranking and increasing Poland’s competitiveness on the international level. Emphasising the importance of startup’s education in dealing with VC funds in the second part of the study will additionally highlight the essence of their cooperation in terms of professionalization of the PE market and a growth of the country’s innovativeness.

scholarly journals Specialized Venture Capital Funds as a Tool for Supporting Investment in Advanced Technologies

2021 ◽  
Vol 7 (3) ◽  
pp. 217-226
Author(s):  
О. А. Eremchenko
Keyword(s):  
Economic Development ◽  
Venture Capital ◽  
Social Goals ◽  
Decisive Factor ◽  
High Tech ◽  
Investment Funds ◽  
State Institutions ◽  
Advanced Technologies ◽  
Positive Assessment ◽  
State Programs

An overview of the most common and proven in world practice types of budgetary support for the venture industry, including the creation of venture capital funds, is carried out. The Russian experience of state support for the venture capital sector is analyzed, and a positive assessment of the work of closed-end mutual investment funds created by RVC in 2007–2009 is given. The principles for the formation of mechanisms for increasing the venture activity of state institutions, particularly state programs for creating venture capital funds, have been formulated. It is shown that the funds of specialized venture funds can become a decisive factor in supporting startups at the expense of budgetary funds and lead to the organization of additional high-tech jobs, equal spatial economic development of the country, and the achievement of other social goals.

scholarly journals Changes in the level of risk in investment funds in Poland

2017 ◽  
Vol 3 (1) ◽  
pp. 23-31
Author(s):  
Sylwester Kozak
Keyword(s):  
Capital Market ◽  
Similar Amount ◽  
Investment Risk ◽  
Investment Fund ◽  
Rates Of Return ◽  
Investment Funds ◽  
Equity Investment ◽  
Macroeconomic Conditions ◽  
Moderate Growth ◽  
Changes In Risk

The paper analyzes changes in risk of investment fund portfolios in different phases of the macroeconomic cycle. Twenty nine equity investment funds operating during the period of 2005–2015 were examined. The risk was assessed by the standard deviation of rates of return on funds and the β coefficient. The research indicates that the exposure of fund portfolios to risk changed in response to macroeconomic conditions and the situation on the capital market. Risk hit its highest level during the financial crisis years (2008–2011), followed by the dynamic macroeconomic growth years (2005–2007). The moderate growth years (2012–2015) exposed funds to the lowest risk. For the entire period the average and the median funds and the market were exposed to a similar amount of investment risk.

Russia-Focused Venture Capital Supports In-Bound Technology Transfer and Company Building: An Analysis of Investment Trends and Outcomes

2014 ◽  
Vol 20 (1) ◽  
Author(s):  
John M. Garvey ◽  
Shann Kerner ◽  
Axel Tillmann ◽  
Dmitry Kuzmin
Keyword(s):  
Technology Transfer ◽  
Venture Capital ◽  
Early Stage ◽  
Clinical Stage ◽  
Trade Surplus ◽  
Russian Government ◽  
Investment Funds ◽  
Biotechnology Companies ◽  
Biotechnology Sector

This paper analyzes the approaches taken by the Russian government to promote innovation in the biotechnology sector within the country.  Russia is economically strong, currently with a trade surplus, and the country is investing broadly in initiatives that have resulted in in-bound technology transfer, as well as an expansion of the private sector.  These initiatives include government venture capital and investment funds, as well as physical technology “incubator” centers.  The result has been an increase in the number of clinical-stage biotechnology companies operating in Russia, as well as an increase in the number of pharmaceutical candidates undergoing trials in the country.  The biotechnology “boom” has also resulted in an increase in the number of early-stage companies.  This paper investigates current deal and investment trends from the funds that are the principal supporters of biotechnology companies in Russia.

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