Journals review in Venture Capital topics Essay Example | Topics and Well Written Essays - 750 words

Journals review in Venture Capital topics - Essay Example While many financial venture capital funds are structured as SBICs, their main goals, however, are to ensure the profitability of the corporate parent and make the most investment returns out of the financial expertise and contacts of the corporate staff. Third, corporate venture capital funds are either subsidiaries or stand-alone firms organized by non-financial institutions like industrial firms, for instance. They function as in the case of industrial firms to make early investments and take advantage of new technologies. Finally, venture capital limited partnerships are funds organized by professional venture capital firms who have the capability to organize, invest, manage, and liquidate the capital raised from the partnership. The most predominant type in the market for venture capital finance is the venture capital limited partnership which manages more than half of the total industry resources. Unlike SBICs or financial and non-financial corporate funds which have problems in internal affairs, funding sources, or compensation packages, limited partnerships are the safest choice in venture capital funds. They function solely to maximize earnings from venture investments. Most European venture capital funds are sourced from financial institutions like banks, unlike the US venture capital which sources more on institutional investments like pension funds. In Europe, banks are more dominant and powerful that a significant number of venture capital firms are owned and managed by them. Their investments are diverse and are scattered along many different funds. Aside from having strict financial goals, European banks are also found to have strategic objectives in managing their investments. In fact, almost half of European venture funds in 2000 were sourced from banks, insurance companies, and other corporate investors. In the US, however, institutional investors are the most popular sources of funding. Pension funds, for instance, allot only a