A venture capital fund (or “VC”) is a private investment entity that invests money in high-risk ventures (mostly in the technology field) with predicted long-term growth potential. Most VC funds are established for a time of 6 to 10 years and invest during the first 5 years. Due to the high risk investments, the VC’s goal is to gain return of above-average by buying shares and selling them when they become profitable. VCs are a common source of funding for start-ups because of their willingness to make dangerous investments which can create high yields (this usually happens when there is an “Exit” or an “IPO”). The leading Israeli venture capitals are: “JVP”, “Pitango” and “Sequoia”.
What is a Venture Capital Fund ?
About the Author: Lior Keller
Third year Law & Accounting student at the IDC Herzliya. Dreams of becoming an influential figure in Israel’s economy and leading his own company. In his free time he enjoys doing crossfit and reading Robin Sharma’s books (sometimes at the same time..)