Venture Capital Systems; Theories and experiences,（三）.docVIP

Venture Capital Systems; Theories and experiences, With specific emphasis to ECO member countries Farivar Parviz Farzam Program Officer, ECO Secretariat Introduction Funding through Venture Capital (VC) is very new and quite useful for attracting the not-used capitals in the globe especially for risky programs/projects, so this article tries to give a brief overview on venture capitals. ?As the ECO Secretariat has managed to establish a Transfer of Technology Center in the region named ETT-Center(ECO Technology Transfer Center) which in case of operationalization , these resources may assist the entrepreneurs, innovators, investors and stakeholders of the member states to invest more effectively in their projects. Definition ? Private equity is a broad term which commonly refers to any type of equity investment in an asset in which the equity is not freely tradable on a public stock market. More accurately, private equity refers to the manner in which the funds have been raised, namely on the private markets, as opposed to the public markets. Venture capital is a type of private equity capital typically provided by professional, outside investors to new, growth businesses. So, venture capital defines as: Money available for investment in innovative enterprises or research, especially in high technology, in which both the risk of loss and the potential for profit may be considerable. ?Also known as risk capital, it is the finance provided by professionals or Venture Capital Firms who invest alongside management in companies which seem to have the potential to develop into significant economic contributors, basically investing in unproven businesses usually new and young companies. A venture capital fund primarily invests the financial capital of third-party investors in enterprises that are too risky for the standard capital markets or bank loans. Venture capital can also include managerial and technical expertise. Most venture capital comes from a group of wealthy i