One of the ‘alternative investment new kids on the block’ is Venture Capital funds.

These are funds that invest in start-ups and new companies that need capital input to grow. They usually include a particular sector e.g. information technology, cleantech, fintech, healthcare tech or education etc.

It involves these start up companies seeking external capital investment to expand and mitigate the risk of failure. In exchange for capital and expertise, investors get an ownership stake or equity cut of the business with the promise of good returns or capital payback down the line once the business is established.

This is a risky investment, but the returns could be very high. Venture capital fund managers do extensive research into viability and high growth potential of start-ups before selecting them for the fund.

Benefits of investing in Venture Capital Funds

•    Possibility of high returns
•    Rapid expansion of start-ups can potentially lead to larger profits
•    Spurs innovation and tech development that will improve our way of life
•    Potential of becoming the big tech companies of tomorrow

Always ensure that you consult with a financial expert before investing in new funds. Your investment choices should depend on your financial situation, risk appetite and goals. [email protected]

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere Acuma advisor for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.