Considerations about Venture Capital

1 . Control
Although Prosperitas Capital Partners invests in the company, it does not normally acquire a controlling interest. However Prosperitas will take an active role on decision making through board participation, and if needed will help providing hands-on experience and its network of contacts.


2. Exit Strategies
Since venture capital funds are time limited, a venture capitalist will want to exit the business usually after 3 to 6 years of helping to grow the company. This 'exit' is usually achieved via a sale to a strategic buyer or an IPO (not too common in developing markets like ours).

In the event of an outright sale, both the founder and venture capitalist exit at the same time. It is crucial that the entrepreneur is ready to sell the company within this time frame or re-purchase Prosperitas' shares in the company at a pre-fixed value.