VENTURE CAPITAL FUNDS IMPACT ON ECONOMIC DEVELOPMENT

Abstract

Venture  capital represents the money who invest wealthy individuals or institutional investors in companies at different stages of their development in order to achieve thr greatest possible profit. Venture capital is  a long-term investment that carries a great risik or potential high yields. The venture industry provides  the  capital  to development  some of the  most  innovative  and successful companies. But venture capital is  more  than  money. Active engagement manager funds through membership in boards of is crucial for the success of the company. Over the next  three to eight  or so  years, the venture  firm  works  with  the managers of company to growthe  company. After a period intensive  development of the company they are sold. Venture funds invest in small and medium-sized companies with potential for growth and development and as such are highly desirable source of funding especially in developing countries. In the world of risk capital proved to be the driving force behind the development of many countries.