Tuesday 7th October 2008 Association for the Promotion of Industry Castellano / Euskera Web Map Newsletter Other Links Contact Areas of operation International Business Promotion Technological Innovation Information Society SPRI Who We Are Shareholdings Annual Report Publications Some Useful Addresses Venture Capital as an activity The Central Management Unit Funds and Companies managed Investee companies Contact Other Links Venture Capital Management Venture Capital as an activity WHAT "VENTURE CAPITAL" CONSISTS OF WHAT "VENTURE CAPITAL" CONTRIBUTES TO COMPANY SHAREHOLDINGS HOW SHAREHOLDINGS ARE CREATED WHEN SHAREHOLDINGS ARE CREATED COMPANIES IN WHICH SHAREHOLDINGS ARE CREATED KEY FACTORS IN RELATION TO SHAREHOLDINGS "VENTURE CAPITAL" is an economic activity which consists of: Collecting financial resources For the incorporation of Venture Capital Entities Specialists in shareholding operations Normally temporary and minority holdings Capital of unquoted non-finance entities With a profitable and plausible business project Up "VENTURE CAPITAL", as a company partner, provides the following: FINANCE: Increase in Net Equity May be accompanied by Long Term Authorised Funds Adds financial reliability and credibility INCREASES ECONOMIC AND FINANCIAL STABILITY INTERNALLY: Experience in business management Seriousness and strictness with respect to procedures and strategies Normally free of interventionism Co-operation in the search for additional finance Back-up for globalisation Brings in fresh capital ADDS PRESTIGE AND VALUE TO THE COMPANY Up VENTURE CAPITAL stakes may be organised as follows: Ordinary shares Preference shares Share loans Bonds / Convertible loans Simple loans Up "VENTURE CAPITAL" may play a role in the following stages of the company: COMPANIES AT THE INITIAL STAGES Project: Financing of seeds (Seed Capital) Creation: Financing for start-up DEVELOPING COMPANIES: Extension: Financing of growth or development Substitution: Purchase from another shareholder Renovation: Re-orientation MBO/MBI: Purchase with leverage "VENTURE CAPITAL" plays a role in companies as follows: Of minimum size Competent, committed and professional management team Long term company project for growth and development A shareholding system which permits long term / medium term temporary stakes Envisaged profitability in accordance with the risk Up The key factors which "VENTURE CAPITAL" considers for shareholdings in companies are: A FEASIBLE IDEA A COMPETENT MANAGEMENT TEAM THE IMPORTANCE OF THE HUMAN FACTOR ORIENTATION TOWARDS GROWTH ORIENTACION AL CRECIMIENTO SOUND FINANCIAL STRUCTURE Up