Venture Capital is a type of private equity investing in promising companies with high growth potential.

Venture Capital - The term refers to a long-term investment of a stakeholders in a potentially successful startup. This is the general definition. The main goal of the venture capital companies is not only to get the return on investment, but also to develop an idea, concept and product/service of the company they invested in.

The main purpose of venture capital companies is to get high profits by investing for period of 5-10 years. Venture capitalists aim to discover high-potential entrepreneurs, to invest in promising start-ups and determining long-term profits.

The main idea of venture capital is to find out young, innovative enterprises and “projects of future” that are able not only to turn into profitable businesses, but develop and fundamentally change the field they operate in. Venture capitalists finance the most innovative entrepreneurs and help them to improve their innovative ideas that is a prerequisite for raised employment and the country's economic growth.

Venture capital plays an important role in promoting the more innovative economy, providing the investment and resources needed for high-risk businesses. The development of venture capital companies will expand the revenues of other fields – audit companies, law firms, banking, etc. and the service sector will grow much faster. Accordingly, the demand and competition will be raised in these markets.

Financing projects through the Venture Capital will lead to the expansion of many enterprises, which will be affected to the country’s employment rate. As a result, suppliers or intermediaries will get the increased revenues. There will be increased demand for brokerage, auditing, legal, research or other subsidiary companies. In the end, emerging capital markets will promote competitiveness, business transparency, steady economic growth, and improved public welfare.

Companies funded by Venture Capital and Private Equity funds experience significant growth, thus, demand for audit, legal, consulting services is increasing. Accordingly, as the revenues of these organizations increase, the demand for and employment of qualified skillforce increases as well.

Venture capital invests in technology-based enterprises such as biotechnology, nanotechnology, information technology and electronics that accelerate the country's economic development, thus boosting competitiveness internationally.

VC impact on the country's competitiveness can be expressed as follows:

• GDP growth
• High level of productivity
• Development of technology-based industries
• Low unemployment rate
• International recognition of the country / region;
• High living standards

The development of Venture Capital in Georgia will directly affect the development of the following directions in the country:

• Attracting Foreign Direct Investment
• Increasing the competitiveness of Georgia internationally
• Developing innovative and high-tech projects and discovering innovative sectors
• Increasing local and international revenues of individual companies/businesses
• Creating new jobs and maintaining economic growth
• Increasing demand for professional skill force
• Facilitating technological progress
• Raising country's overall productivity
• Increasing average salary rates

The Venture Capital Fund is an investment fund that manages assets of private and corporate investors and aims to invest in innovative and high-tech startups, especially in companies with high growth potential.

The purpose of the fund is to assist different stakeholders in finding opportunities to invest in a business project and/or raise capital. GVCA creates an effective platform for investors, business companies and individuals who have an innovative idea.

Venture Capital Fund for Society and entrepreneurs

• The fund is ready to help individuals who have a project / idea and need capital to implement this idea by finding capital.

Venture Capital Fund for Business

• Increased competitive advantage - Access to innovative and high-technology investment projects will enable companies to invest in innovative startups in both existing and emerging and new fields;
• Increased local and international revenues;
• Opportunity for companies to set up and develop their own funds by the help of VC fund;

Venture Capital Fund for Investors

• Investors will have the opportunity to be the first who learn about innovative and technological ideas, invest in promising start-ups and become the owners of the future successful business.