Venture capital

Some financial companies specialize in providing risk capital or venture capital. Venture capital firms contribute to the share capital of a company, with the aim of making large profits if it flourishes or goes public. They provide financial resources without requiring the traditional forms of security. Only fast-growing young companies which are likely to generate significant revenue in a short period of time and, generally speaking, have a capital requirement of several million Swiss francs will have the opportunity of benefiting from this kind of financing. Venture capitalists consider themselves to be guides during the development phase of the financing project. After their job is done, they generally withdraw and sell their investment on to new investors.