Venture Capital in Sme Financing

The importance of contingency Capital in SME funding An pose from Portugal Introduction A risk groovy market has been devise up in Portugal, although it is yet to mature and establish itself as the preferent means of financing companies that do not have bear glide slope to peachy markets, operate in emerging sectors or argon at a risk-prone stage of their development. The recent incorporation of risk capital syndication funds will stimulate the foundation of new companies ge bed towards innovation and productivity, strengthening and mobilizing the capital of combat-ready companies. The funds seek to encourage alternative and innovative financing mechanisms so as to increase the range of financial instruments that posterior contribute to increasing company competitiveness and capitalisation. There are also other support mechanisms in place as let out of the National Strategic Reference Framework (QREN) for summit and strengthening the capital of Financial Engineering Instruments for the Financing and piece of land of Risk in Innovation. These are aimed at stimulating the part of alternative financing instruments, in particular risk capital and seed capital, which are more suitable for supporting be investment projects with a strong leaning towards innovation.

In this way, by strengthening and stimulating the availability of risk capital, the aim is to dish out companies develop their growth, consolidation and international expansion strategies within a framework and financial environment that provides support for such activities. (http://www.portugalglobal.p t/EN/InvestInPortugal/InvestorsGuide/Venture! Capital/Pages/IsthereariskcapitalmarketinPortugal.aspx) At SME level, access to capital markets is generally regarded as special(a) and, since not all entrepreneurs can finance with their own resources their businesses or access private equity, the form of funding more chronic for this pillow slip of companies will eventually be resort to cashbox credit. Venture capital has served, in...If you want to get a complete essay, coiffe it on our website: OrderCustomPaper.com

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