Derbyshire First Investments

Venture capital involves investment - in the form of taking a shareholding - in a private limited firm that is seeking external funding in order to achieve growth of sales and profits. Typically, the firm cannot raise additional bank funding in order to realise its ambitions because of a lack of security to support loans. It must therefore seek equity capital. The venture capital investor supplies such funding on a medium term basis and usually seeks an exit from the investment within five years.