Venture capital is a financing alternative that entrepreneurs can use to leverage their business, and that can be considered, in certain situations, as the ideal solution compared to traditional market alternatives.
The PMYE Portal shares that venture capital is a source of business financing, which is mainly aimed at small and medium-sized companies. This investment is made by a specialized investment company that takes a minority position in the receiving company, in the medium to long term.
It is known as risk capital because the receiving companies are valued as companies with considerable levels of volatility, for which reason they have difficulties in obtaining capital through more common financing instruments.
In this type of investment, the investment company offers added value, joining the board of directors of the receiving company, providing advice on the main strategic decisions, and assisting in the hiring of key personnel. The investor also provides contacts in the legal spheres, investment banking or other businesses serving the respective sector.
The investment can be made in any of the following phases of the receiving company:
- Leveraged Buyout (LBO/MBO/MBJ)
Venture capital facilitates the initial development and growth of a company by allowing financing in its early stages. In addition, it facilitates the process of internationalization of the company, the mobilization of capital and the movement of shareholders.
Adapt Ventures: GK Venture Capital Firm Promotes Entrepreneurship
GK, one of the most solid and innovative groups in the Central American region, with businesses in the textile industry, real estate, technology, agriculture or lifestyle, maintains operations in countries in the region such as Honduras, Guatemala, Mexico or the United States.
In the interest of seeing more startups spring up in all those countries, and thanks to the vision of its Chairman, Mohamad Yusuf Amdani Bai, GK’s Technology Division seeks to foster technological innovation, high-tech entrepreneurs, and IT talent through smart investments and developments.
That momentum is channeled through Adapt Ventures, an early-stage venture capital firm that invests in Seed/Series A companies in both the United States and the Latin American region.
Adapt Ventures supports emerging founders with a passion for creativity, and is an early investor in companies like Italic, Newness, Party Round, and Clara, to name just a few.
Each project is carefully designed to promote technological advances in the context of the digital world, through which they provide the opportunity to train and train high-tech talent.
In this way, GK, through Adapt Ventures, represents a form of business investment, with the purpose of financing companies through a specific analysis of the projects presented, their growth potential and the relationship with risk.