If you are a venture capitalist then the world is your playground. With the kind of money you can offer, a huge number of companies will always be ready to accept your investment. The best part is that with a relatively safer investment you can earn a large profits that otherwise would have been very risky to gain through any other form of investments. However, one thing that you need to discern first is where to invest your venture capital. For every venture capitalist, where to invest hard earned money will always be a cause of concern. Here are some suggestions to help you make a decision with regards to the various investments that you can make as a venture capitalist.
Invest As a Venture Capitalist in the Small Companies
A lot of new companies are always entering the market with an eye on various sources for venture capital. These companies usually have a limited operating history and their size is not big enough to handle operations which would attract a large investment from the public sector. Also, there is a thin chance that such companies will be able to secure a loan from a bank or can benefit from a debt offering. Hence, you as a venture capitalist can enter in and make an investment in these companies.
The fact is that to be a venture capitalist with these companies involves a higher risk factor because of the less operational experience but at the same time, you have a lot to gain as a venture capitalist. Since, the company you may be investing in is very small and is not as mature as its bigger contemporaries, you can get a significant controlling power in terms of making important decisions for the company. Apart from that, the small investment that you make as a venture capitalist will offer you with a large share in the company’s ownership.
Internet Companies Are Perfect For Investing In As a Venture Capitalist
Nowadays, it is a very smart decision to make an investment in the various start-up Internet companies with high potential. This is an opinion which is shared by a number of leading venture capitalists.TheInternet companies that are coming up in India and China are emerging as an option to make a huge profit from the venture capital investment which is made in these markets.
However, one thing that every leading venture capitalist will suggest you is that you need to be very cautious about choosing the Internet Company that you invest in. Not only does it have to be very innovative in its operations but it also has to be very efficient in terms of human resources.
As a venture capitalist, it is safe for you to go through the Internet Company’s profile first, before putting your hard earned money into it. The company should boast of a smart and energetic workforce with efficient training.
With innumerable Internet companies looking for a venture capitalist investment you will surely get a chance to make a sound investment in one of them and earn handsome returns.
Enter the Chinese Market as a Venture Capitalist
The last 10 years have seen the Chinese market take a big leap in terms of overall growth. Every other venture capitalist from the western hemisphere has gone ahead and made some really big investments in the various Chinese start-up companies.
At present, the whole process of entering the Chinese market as a venture capitalist is very easy. You can easily invest your venture capital in the Chinese market by relying on the various offshore funding vehicles.
Some of the leading financial publications in China have estimated that there is a large pool of venture capital dedicated to China, which amounts to a large amount upwards of $4 billion. Till now the investments made by any venture capitalist were more or less limited to the various large scale options but the recent development indicates a shift towards the small companies as well. It is now possible for a venture capitalist to invest in a small company and expect some really good returns.
China with its advanced infrastructure always looks forward to adopting new technologies which have led to the creation of the most advanced product and services which not only serve the needs of the large Chinese population but are also exported to other countries bringing in a lot of profit in the Chinese market. This fact alone acts as a major push for you to enter the Chinese economy as a venture capitalist and make hay while the sun shines.
Some More Areas in which you can make Investment as a Venture Capitalist
As a venture capitalist, you can follow the legacy set by the earlier capitalists who have contributed in the development of a range of sectors like biotechnology, computer and communications. At present, as a venture capitalist, you can put your money in companies dealing in biotechnology, software, media and entertainment, medical devices, Internet, networking and wireless communications among other things.
In the last five years, the various venture capitalists around the world have made investments in the sectors related to the production of clean energies. The perfect targets are the companies producing renewable and sustainable energy by utilizing the various environmental technologies. Power management is another area where one can make a killing as a venture capitalist.
Moreover, being a venture capitalist you can also make an investment in the various companies that are introducing innovations in the traditional industries offering a range of consumer products, financial services, business product and services. Manufacturing units as well healthcare services are also a good option for making an investment as a venture capitalist. They have proven to offer a good return-on-investment on the capital invested in their operations.
So now that you know where to invest if you’re a venture capitalist, don’t wait to go ahead and make a killing in the market, earning some really huge profits.