Venture Capital
Our venture capital approach is centered on early-stage funding for innovative startups with scalable business models, particularly in renewable energy, clean technologies, and sustainability.
By partnering with forward-thinking entrepreneurs, we aim to support the businesses shaping the green and clean future while ensuring substantial returns.
FundamentalS
Venture Capital (VC) investing represents one of the most dynamic and high-reward segments of finance. It involves investing in early-stage companies, often startups, in exchange for equity (ownership). These startups are typically innovative, fast-growing, and risky, but they have the potential for extraordinary returns (Harvard Business Review, “How Venture Capital Works,” 1998).
In simple terms, venture capitalists provide money to startups that are too young or risky to access traditional bank financing. In return, they expect a significant ownership stake and influence over the company’s direction.
According to the National Venture Capital Association (NVCA), venture-backed companies have historically driven a huge part of technological advancement, creating millions of jobs and trillions of dollars in value (NVCA Yearbook, 2023).
Key Features of Venture Capital
- High Risk, High Reward: Around 75% of venture-backed startups fail, but successful ones (like Uber, Airbnb, or Zoom) can deliver returns of 10x, 100x, or more (Cambridge Associates, 2021 Private Investment Benchmarks).
- Stages of Funding:
Seed Stage: The earliest funding to develop an idea.
Series A, B, C…: Later rounds that fund scaling, hiring, or global expansion. - Exit Strategy: VC investors earn returns when startups “exit”, usually through an Initial Public Offering (IPO) or acquisition by a larger company (PitchBook Data, 2023).
Why Venture Capital?
Venture Capital investing offers unique advantages:
- Exposure to Innovation: VCs invest in groundbreaking industries like AI, biotech, and fintech.
- Potential for Outsized Returns: Top-performing VC funds have historically outpaced public markets over decades (Preqin Global Private Equity & Venture Capital Report, 2023).
- Portfolio Diversification: Adding venture investments can diversify beyond traditional stocks and real estate.
However, VC investing requires patience (investments are usually illiquid for 5–10 years) and a high tolerance for risk.
How Venture Capital Funds Work
Most investors don’t invest directly into startups, they invest into venture capital funds. These funds are managed by professional VCs who scout, evaluate, and invest in startups.
The typical structure is a “2 and 20” model:
- 2% annual management fee
- 20% of the profits (carried interest) go to the fund managers (Investopedia, “Carried Interest Definition,” 2023).
Limited Partners (LPs), wealthy individuals, pension funds and universities, supply the capital but have no direct involvement in day-to-day decisions.
New Trends: Venture Capital for Everyone?
Historically, venture capital investing was reserved for accredited investors (high-net-worth individuals). However, the rise of equity crowdfunding platforms like AngelList, SeedInvest, and Republic is gradually opening early-stage investing to more people (SEC Regulation Crowdfunding Rules, 2021).
Still, investing in startups remains risky and requires careful due diligence.
📚 Top 10 Venture Capital Books recommendation (Beginner → Advanced)
Beginner Level
- Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist by Brad Feld and Jason Mendelson
(The essential guide to understanding how venture deals are structured.) Purchase it here - The Secrets of Sand Hill Road: Venture Capital and How to Get It by Scott Kupor
(Written by a top VC at Andreessen Horowitz; a must-read for beginners.) Purchase it here - Angel: How to Invest in Technology Startups by Jason Calacanis
(Practical advice for individuals interested in angel investing.) Purchase it here - The Business of Venture Capital by Mahendra Ramsinghani
(Perfect bridge between beginner and intermediate.) Purchase it here - Early Exits: Exit Strategies for Entrepreneurs and Angel Investors by Basil Peters
(Focused on understanding exit strategies in startup investing.) Purchase it here
Intermediate to Advanced Level
- Secrets of Sand Hill Road: Venture Capital by Scott Kupor
(A deeper dive into fundraising dynamics — slightly advanced.) Purchase it here - Mastering the VC Game: A Venture Capital Insider Reveals How to Get from Start-up to IPO by Jeffrey Bussgang
(Great for entrepreneurs and investors alike.) Purchase it here - Zero to One: Notes on Startups, or How to Build the Future by Peter Thiel
(While more startup-focused, crucial for understanding venture-backed company growth.) Purchase it here - High Growth Handbook: Scaling Startups from 10 to 10,000 People by Elad Gil
(Advice from top Silicon Valley insiders.) Purchase it here - Venture Capital Strategy: How to Think Like a Venture Capitalist by Patrick Vernon
(Explains VC decision-making and portfolio strategy.) Purchase it here