Venture capital is private investment in a growing business and is typically funded by institutional investors and high net worth individuals that are pooled together by dedicated investment firms. Venture capital is a type of equity financing that addresses the funding needs of high-potential, growth companies that for reasons of size, assets, and stage of development cannot seek capital from more traditional sources, such as public markets and banks. This type of capital is provided in the interest of generating a return through the sale of the company or initial public offering.
Venture capital financing is generally a cash investment made in exchange for shares in the invested company. Before venture capital is placed there is typically a considerable amount of due diligence performed to understand the company and its growth potential.
CNF Exchange Offers New Avenues of Profitability for Venture Capital Companies
Venture capitalists specialize in higher risk investments with commensurate higher rates of return on the initial cash outlay. These venture capital funding investments may include seed money for start-up companies, research and development projects or large-scale expansions into new or contested areas of the marketplace. Venture capital companies can accept this higher degree of risk due to the higher rate of return on investment expected if the project or business strategy is a success. Borrowers seek venture capital funding in cases where traditional lending arrangements are unavailable or unappealing due to the higher degree of security necessary for these loans. CNF Exchange makes it easier for investors to identify and pursue the most advantageous venture capital funding opportunities in the financial marketplace by connecting borrowers and lenders in our innovative finance matching venue. The CNF Exchange interface streamlines the qualification and documentation process for both parties, allowing faster decisions and providing venture capital companies with added avenues of profitability in today's competitive financial world.