Venture Capital in Sme Financing

The importance of affect Capital in SME financial backing An instance from Portugal Introduction A risk groovy market has been coiffe up in Portugal, although it is yet to mature and establish itself as the preferent means of financing companies that do not have give birth inlet to chapiter markets, operate in emerging sectors or argon at a risk-prone stage of their development. The recent internalisation of risk capital syndication funds will stimulate the earthly concern of new companies ge ared towards innovation and productivity, strengthening and mobilizing the capital of active agent companies. The funds seek to encourage alternative and innovative financing mechanisms so as to increase the range of financial instruments that arse contribute to increasing company competitiveness and capitalisation. There are also other support mechanisms in place as power of the National Strategic Reference Framework (QREN) for upper side and strengthening the capi tal of Financial Engineering Instruments for the Financing and grant 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 mix investment projects with a strong leaning towards innovation.

In this way, by strengthening and stimulating the availability of risk capital, the aim is to solve companies develop their growth, consolidation and international expansion strategies within a framework and financial environment that provides support for such activities. (http://www.portugalgl obal.pt/EN/InvestInPortugal/InvestorsGuide/V! entureCapital/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 sheath of companies will eventually be resort to cashbox credit. Venture capital has served, in...If you want to get a complete essay, post it on our website: OrderCustomPaper.com

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