venture capital capital risque

Notions of Venture Capital, Development Capital etc…

Venture Capital

This term refers to investments made in the creation and development of innovative start-ups. Funds operating in this niche provide money but also operational and strategic assistance to the company to support its development. In this segment, the risk and potential return are greater.

Development Capital

Development capital brings together operations to strengthen and expand activities and is aimed at companies that have passed the first few years. The funds are there to enable companies to take a step forward in terms of turnover growth and profitability.

Transmission Capital

This segment includes operations related to mature businesses. Most of the time, these are SMEs (small and medium-sized businesses) or ETIs (mid-sized businesses). The funds are there to prepare the transfer of the company to another industrial entity or its IPO. Since companies are already profitable, investment funds often use leverage to finance debt. These operations are then called Leveraged buy-out (LBO).

Last category, turnaround capital concerns companies facing cash flow difficulties. The funds then inject the financial resources necessary for the recovery of its activity while carrying out internal restructuring.

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