Asymmetric fund

Last updated

Asymmetric fund is a venture capital fund where different investors have different terms. Typically the asymmetry is seen in cases where there's a investor that has other interests in addition to straight profit generation through the investment, such as tax income in case of public investors. [1] [2]

A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity. Private equity funds are typically limited partnerships with a fixed term of 10 years. At inception, institutional investors make an unfunded commitment to the limited partnership, which is then drawn over the term of the fund. From the investors' point of view, funds can be traditional or asymmetric.

Asymmetric model has its roots in Israel. [3] Asymmetry was used to initiate the venture capital business there. Part of the success of Israeli venture backed technology business is attributed this asymmetric model. More recently asymmetric model has been raising phenomena especially in some European countries. There are asymmetric funds operating at least in Finland, Great Britain, the Netherlands and Poland. [4]

Israel country in the Middle East

Israel, also known as the State of Israel, is a country in Western Asia, located on the southeastern shore of the Mediterranean Sea and the northern shore of the Red Sea. It has land borders with Lebanon to the north, Syria to the northeast, Jordan on the east, the Palestinian territories of the West Bank and Gaza Strip to the east and west, respectively, and Egypt to the southwest. The country contains geographically diverse features within its relatively small area. Israel's economic and technological center is Tel Aviv, while its seat of government and proclaimed capital is Jerusalem, although the state's sovereignty over Jerusalem has only partial recognition.

Finland Republic in Northern Europe

Finland, officially the Republic of Finland, is a Nordic country in Northern Europe bordering the Baltic Sea, Gulf of Bothnia, and Gulf of Finland, between Norway to the north, Sweden to the northwest, and Russia to the east. The capital and largest city is Helsinki. Other major cities are Espoo, Vantaa, Tampere, Oulu and Turku.

Great Britain island in the North Atlantic off the north-west coast of continental Europe

Great Britain is an island in the North Atlantic Ocean off the northwest coast of continental Europe. With an area of 209,331 km2 (80,823 sq mi), it is the largest of the British Isles, the largest European island, and the ninth-largest island in the world. In 2011, Great Britain had a population of about 61 million people, making it the world's third-most populous island after Java in Indonesia and Honshu in Japan. The island of Ireland is situated to the west of Great Britain, and together these islands, along with over 1,000 smaller surrounding islands, form the British Isles archipelago.

See also

Venture capital financing is a type of funding by venture capital. It is private equity capital that can be provided at various stages or funding rounds. Common funding rounds include early-stage seed funding in high-potential, growth companies and growth funding. Funding is provided in the interest of generating a return on investment or ROI through an eventual exit such as a merger and acquisition,, or Initial public offering, of the company.

Related Research Articles

Seed money, sometimes known as seed funding or seed capital, is a form of securities offering in which an investor invests capital in a startup company in exchange for an equity stake in the company. The term seed suggests that this is a very early investment, meant to support the business until it can generate cash of its own, or until it is ready for further investments. Seed money options include friends and family funding, angel funding, and crowdfunding.

Clean technology is any process, product, or service that reduces negative environmental impacts through significant energy efficiency improvements, the sustainable use of resources, or environmental protection activities. Clean technology includes a broad range of technology related to recycling, renewable energy, information technology, green transportation, electric motors, green chemistry, lighting, Greywater, and more. Environmental finance is a method by which new clean technology projects that have proven that they are "additional" or "beyond business as usual" can obtain financing through the generation of carbon credits. A project that is developed with concern for climate change mitigation is also known as a carbon project.

A venture round is a type of funding round used for venture capital financing, by which startup companies obtain investment, generally from venture capitalists and other institutional investors. The availability of venture funding is among the primary stimuli for the development of new companies and technologies.

An angel investor is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. Angel investors usually give support to start-ups at the initial moments and when most investors are not prepared to back them. A small but increasing number of angel investors invest online through equity crowdfunding or organize themselves into angel groups or angel networks to share investment capital, as well as to provide advice to their portfolio companies. In the last 50 years the number of angel investors has greatly increased.

Carried interest

Carried interest, or carry, in finance, is a share of the profits of an investment paid to the investment manager in excess of the amount that the manager contributes to the partnership, specifically in alternative investments. It is a performance fee, rewarding the manager for enhancing performance.

Corporate venture capital (CVC) is the investment of corporate funds directly in external startup companies. CVC is defined by the Business Dictionary as the "practice where a large firm takes an equity stake in a small but innovative or specialist firm, to which it may also provide management and marketing expertise; the objective is to gain a specific competitive advantage.

Supercell (video game company) Finnish mobile game development company based in Helsinki

Supercell is a Finnish mobile game development company based in Helsinki, Finland. Founded in May 2010, the company's debut game was the browser game Gunshine.net, and after its release in 2011, Supercell started developing games for mobile devices. Since then, the company has fully released five mobile games: Hay Day, Clash of Clans, Boom Beach, Clash Royale, and Brawl Stars, which are freemium fast-paced games and have been very successful for the company, the first two generating revenue of $2.4 million a day in 2013.

Aaltoes organization

Aaltoes, also known as Aalto Entrepreneurship Society, is a non-profit organization run by students, based in Helsinki, Finland. Founded in 2009, Aaltoes has helped the rapid emergence of a startup culture in Finland in 2008-2011.

Capital for Enterprise Limited (CfEL) was a limited company in the United Kingdom owned by the Department for Business, Innovation and Skills (BIS). CfEL was responsible for managing BIS's financial schemes, such as venture capital funds and loan guarantees, aimed at helping small and medium enterprises (SMEs). It invested over £1.8 billion from its formation and alongside private capital provided £6.5 billion in credit for SMEs. It ceased operating independently on 1 October 2013 and became part of the British Business Bank.

Israel–South Korea relations Diplomatic relations between the State of Israel and South Korea

Israel–South Korea relations refers to the diplomatic, commercial and cultural ties between Israel and South Korea. South Korea has maintained relations with Israel since 1948, and in 1962 both states initiated official diplomatic relations. Israel and South Korea have expressed interest in strengthening the relationship in all areas, particularly defense, but also renewable energy, science and technology, and bilateral trade. Israel and South Korea signed a free trade agreement in 2019, expected to take effect in 2020.

OurCrowd is an investment platform built for accredited investors and institutions to invest in startups and venture funds. Based in Jerusalem, the company launched in February 2013, with overseas branches in the United States, Canada, Australia, Singapore, and Hong Kong.

CapMan Oyj, founded in 1989, is a Finnish private equity fund manager listed in Helsinki Stock Exchange. CapMan manages funds with capital raised mainly from European institutional investors, such as pension funds and insurance companies, endowments, family offices, funds of funds and public institutions.

Equity crowdfunding is the online offering of private company securities to a group of people for investment and therefore it is a part of the capital markets. Because equity crowdfunding involves investment into a commercial enterprise, it is often subject to securities and financial regulation. Equity crowdfunding is also referred to as crowd-investing, investment crowdfunding, or crowd equity.

Crowdfunding is the practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet. Crowdfunding is a form of crowdsourcing and alternative finance. In 2015, over US$34 billion was raised worldwide by crowdfunding.

Amir Bramly

Amir Bramly is an Israeli investor and business man. He is the founder and former manager of Rubicon Business Group and "Kela Fund", and former partner in Hagshama fund. At the height of his career, Bramly controlled dozens of companies, and received intense media coverage both of his own dealings and as an interviewed expert.

Yadin B. Kaufmann is an Israeli-American technology investor, social entrepreneur and writer. Kaufmann has played a key role in Israel's venture capital scene since the “Startup Nation’s” tech boom began in the 1980s and, more recently, has been involved in efforts to create a Palestinian tech industry.

References

  1. ↑ "Fund - Butterfly Ventures". Butterfly Ventures. Retrieved 2012-05-21.[ permanent dead link ]
  2. ↑ "Ministry of Employment and the Economy - Financing for growth". Ministry of Employment and the Economy in Finland. Archived from the original on 2013-05-26. Retrieved 2012-05-21.
  3. ↑ "Suomen ensimmäinen asymmetrinen rahasto Ouluun". Talouselämä. Archived from the original on 2013-02-13. Retrieved 2012-05-21.
  4. ↑ "Suomen ensimmäinen asymmetrinen rahasto Ouluun". Talouselämä. Archived from the original on 2013-02-13. Retrieved 2012-05-21.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.