Venture Capital Africa at WeeTracker turns out to be instrumental in inducing technological development, stimulating creativity and innovation and nurturing entrepreneurship. Financial Institutions provide concerted efforts to create a conducive environment for the growth of Venture Capital Africa. Initiatives are needed to widen the perspective of Venture Capital finance and create a favourable fiscal and regulatory environment. The Venture Capital schemes of the term-lending financial institutions focus mainly on supporting the development of technology and implementing indigenously developed untested technologies. While this concern is understandable just because of a genuine requirement for expanding the base of viable indigenous technology, it leads to a somewhat limited view of Venture Capital.
What is needed is a broader perspective over Venture Capital Africa so that it is viewed as an instrument for financing a huge range of projects that importantly have a “high-risk-high-return” profile. In this context, it is necessary that entrepreneurs, financing bodies, fiscal authorities, regulatory bodies and others understand the concept and relevance of Venture Capital. It must be appreciated that Venture Capital is an instrument for strengthening entrepreneurial forces in the economy, a device for inducing risk-taking and a mechanism for promoting a closer investor/investee relationship.
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Those who would participate in Venture Capital Africa arrangements need to overcome certain traditional psychological barriers and must be willing to build a relationship of genuine partnership and not a perfunctory association of limited involvement. To nurture the growth of Venture Capital, a favourable fiscal and regulatory environment must get created. Some of the specific things that may be are the investors subscribing to the capital of Venture Capital funds may be given greater tax reliefs, and the long-term capital gains of the Venture Capital funds may get taxed at a concessional rate or even exempted totally from taxation. Orderly and efficient mechanisms must be evolved to facilitate the liquidation of investments in Venture Capital funds.
Venture Capital Africa funds get pooled investments that are used to provide businesses with a source of financing. These investment pools or venture capital pools are through outside investors. The person that makes investments is known as a Venture Capitalist. Since this investment turns out to be a high-risk type of investment group of Venture Capitalists through a firm wherein they would place all of their Venture Capital pools that get invested in multiple types of businesses that the firm carefully selects. Engaging in a Venture Capital Africa investment business needs a great amount of money and for this reason, most of the firms select to affiliate with the big financial institutions like banks, insurance companies and others. Most pools have got a fixed life of ten years; this is made so as to lessen the exposure to management and marketing risk of Venture Capital Firms.
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Since Venture Capital Africa Investment occurs out to be the high-risk type of investment most firms would demand a seat over the organization’s board of directors. In this way, they would be able to carefully monitor all business endeavours as well as every business transaction that a company is engaging in. There are also some firms that may go as far as taking over the management of a business specifically while they feel that the present handler is not capable enough of running the business. If you are an entrepreneur and consider a Venture Capital fund as your option for capital financing make sure that you are ready yourself for some surprises.
Venture Capital Africa or Nigerian Fintech Startups Funds make an excellent source of additional capital however so as to be successful in Venture-capital raising you first require to prove to the Venture capitalist that your business is worth their time and their investment. There are key issues that you require to carefully look into if you desire to be given Venture Capital Financing. It is always best to exceed the investor’s expectations of you and your business.
Ensure that you try to represent your business in a professional way always. It is necessary that you impress the Venture Capital firm. Also, it is important for you to remember that investors don’t have a great amount of knowledge about your products, your business and most of all about you. They ensure taking up a huge amount of risk in investing in your business that is why they require to know if you believe in your business just because if you do so would they.