Venture capital: We make you an expert

The area of the Venture Capital is one of the most exciting fields of activity that the world of finance has to offer. If you see your professional future in the constantly growing venture capital sector, the Master's in Finance is the ideal course for you. Our experienced lecturers will equip you with the necessary basic knowledge and pave the way for a career in venture capital. Steep career in the financial sector.

Venture Capital: Basic information

The term "venture capital" can be translated as "risk capital" or "venture capital". This form of investment involves Investment that carries a certain risk for the investor. A possible risk may be that the capital invested does not increase or is even lost completely.

Venture capital differs from loan financing in that the investor knows that the company may fail and that he will lose the money he has invested. For this reason, venture capital tends to be a form of development aid for a business idea to understand. Venture capital investors select their investments carefully and focus on companies that meet certain requirements. These include, among others:

• Promising and growing market
• Novel and innovative business idea
• Clearly recognizable customer benefit (USP → Unique Selling Proposition)

Through the Highlighting a unique benefit shall be the Unique Selling Proposition (USP) that sets the company's own offering apart from the competition and encourages the target group to buy. In reality, only relatively few start-ups meet the requirements described above, which is why total losses occur time and again in the venture capital sector.

Venture Capital: Goals

The aim of venture capital is to Maximizing the money invested. As a rule of thumb, three out of ten deals must be very successful in order to achieve a good profit rate. Venture capital always involves the risk of losing your investment, but also the opportunity to recoup a multiple of your investment in the event of a sale. Desirable is a Profit margin of 40% before taxes, interest, depreciation and amortization.

As a rule, venture capital deals not only provide financial resources - the young company also receives Logistical and non-material support on the part of the investor. This is precisely why venture capitalists are an important partner for young and developing companies. By contributing capital, the investor Co-shareholder with all the associated rights and obligations. Contrary to what many people think, the investor does not acquire a majority stake in the company - venture capital companies want the founders to hold a majority stake in the company.

What does a venture capital specialist need to be able to do?

As part of the Private Equity Venture capital is an area of work in which analytical skills are of outstanding importance. Other qualities that are expected of venture capitalists include a High load capacitystrategic thinking and management skills. It is also important to have pronounced cost-efficient thinking - especially when it comes to business in the industrial and healthcare sectors.

The most important employers of venture capitalists include investment companies, management consultancies, law firms as well as investment, tax consulting and auditing companies. The skills required include the management of financing rounds, the preparation and negotiation of term sheets and the creation of capitalization tables. Other areas of responsibility include the development of security concepts and the preparation of exit solutions such as sales or IPOs.