Talk:Micro venture capital

(First comment)

I've been interested in social responsibility for some time now and have taken an interest in micro finance but am not quite clear on micro venture capital.

Clearly, the goal of micro finance is to lend small sums to individuals who might not otherwise have access to money while collecting interest on the loan. The investor thereby earns a return on the investment.

However, traditional venture capital is designed to provide funds to individuals/organizations in exchange for equity. A typical exit is via IPO where the venture capital firm will earn their return by selling shares for (hopefully) more than was initially invested. Alternatively, the venture capitalist can take dividends.

What I am not clear on, is how micro venture capital would work. Is the investment strategy the same for such a small investment? Does this venture capital require an exit strategy as with traditional placements?

I would appreciate comments and discussion on this subject.

Cheers!

P

Pmx1234 (talk) 04:46, 28 December 2007 (UTC)

Connections

This page is linked in the lead with the Venture capital article, but reading it through the subject seems to have in more in common with the Microcredit movement. I've added them in a "See also" section, but the article here could do with some tidying up. Moonraker12 (talk) 06:35, 22 February 2013 (UTC)