THE MODEL OF FINANCING INNOVATIVE FIRMS THROUGH VENTURE CAPITAL
THE MODEL OF FINANCING INNOVATIVE FIRMS THROUGH VENTURE CAPITAL

Summary/Abstract: Entrepreneurs of companies keep asking themselves what sources to use in order to finance their own entrepreneurial ideas that enable growth, existence and income because they do not have sources of financing. One of these sources is risk capital, normally used by capital owners to finance innovative companies with a suitable business idea or challenge, a persuasive business plan and a vision of doing business with income that would be achieved in a certain period of time with the help of the business idea. Venture capital is a part of equity and venture capital funds, which enter a company, become its co-owners for a certain period of time. The research, provided among Slovenian entrepreneurs and investors of venture capital, shows that knowledge about the purpose and role of venture capital at financing high potential and development companies is rather poor. This is the reason why the development of venture capital can be expected in a couple of years.

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