Page 16 - ITI VC Guide V10
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Equity Funding Guide
Employment Investment Incentive, Enterprise Investment Scheme or Enterprise Management Incentives, depending upon the jurisdiction
the company is based in and other criteria. Professional help should be sought to confirm eligibility and benefits of these schemes at an early opportunity.
The end result is likely to be a funding package which includes a cocktail of funders secured with the assistance of the Venture Capitalist.
It is this flexibility and value-added input from a Venture Capital investor which differentiates them from other funders.
Venture Capitalists look for capital gains from their investments. They adopt a portfolio approach to their investments which reflects their strategy to mitigate the risk of investing unsecured funds inearly stage companies. Before they invest, VC executives will consider the likelihood of realising their investment. After all, they are responsible for returning the
cash invested in their fund with interest to their investors.
The promoters ability to implement their business plan in full is the obvious question, but just as importantly, can the company in question be sold to another trade player or find another way to redeem the Venture Capitalist’s investment within a reasonable time frame (usually between three and seven years)?
