Venture Capital funds and Private Equity firms invest in early stage or growth phase companies that show long – term growth potential.
• These firms invest in companies which possess qualities such as innovative/disruptive technologies, competent management teams and well-developed business models. They also conduct extensive due diligence regarding the company’s business model, management team, industry dynamics, growth prospects, etc. before investing.
• These firms usually take board seats and provide advice, support, introductions, etc. related to operations, strategy, and financial management of the company
• This combination of funding and expertise usually results in good growth prospects for the investee company
This smallcase consists of stocks in which PE and or VC firms hold high stakes.
smallcase is played out