Venture capital is long-term capital, as investors usually look to retain their involvement for between three and seven years. Because they are shareholders, VC investors seek to help companies in both good and difficult times. They are patient and flexible investors, who know that it takes time to achieve desired results and that even good companies can experience temporary setbacks. They are also ready to finance further investment if necessary. Moreover, while debts are an obstacle to further credit, VC investment actually improves the debt to equity ratio and increases a company's credit rating.

Venture capital is not just about money. By entering into cooperation with a PE/VC fund a company gains an experienced partner that is well-connected and is used to thinking long-term. Having analyzed thousands of investment projects, researched hundreds of businesses and worked with countless companies, VC investors have rich experience that is worth tapping into. Moreover, they have broad contacts in the business world and among financial institutions, consulting companies, and law firms. That is why they can truly be of assistance and, furthermore, bring a new level of credibility to the company. VC investors also monitor a company's activities, especially from the financial perspective, which allows them to identify possible problems early on and to work with the company to solve them. It is the combination of money, experience and long-term involvement in the company that makes venture capital attractive.

Source: PPEA

Venture Capital Associations

Polish Private Equity Association (PPEA) Ms. Barbara Nowakowska, Executive Director Emilii Plater 53 (31st floor) 00-113 Warsaw T: (+48 22) 458 8430 / M: (+48) 693 061 414

European Private Equity & Venture Capital Association (EVCA) Mr. Helmut Schuhsler, Chairman Bastion Tower, Place du Champ de Mars 5 B-1050 Brussels, Belgium T: (+32) 2 715 0020

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